During this time, I have seen many friends who have just entered the market make trades, and I found that they overlook a very important point, which is the risk-reward ratio.

So what is the risk-reward ratio?

For example, if you invest 1 million yuan and trade 10 times according to a certain trading system, with 4 profitable trades earning 150,000 yuan, 250,000 yuan, 350,000 yuan, and 450,000 yuan respectively; and 6 losing trades losing 100,000 yuan, 150,000 yuan, 100,000 yuan, 50,000 yuan, 70,000 yuan, and 200,000 yuan.

At this point, the average profit during winning trades is 300,000 yuan, while the average loss during losing trades is 111,700 yuan, resulting in a risk-reward ratio of 30/11.17 ≈ 2.69.

If you continuously trade using this trading system, whether it is 100 times or 1000 times, theoretically, you can achieve profits with a risk-reward ratio of 2.69. A risk-reward ratio of less than 1 indicates a loss.

Are you still losing money? In this market, continuing to lose money only means you are a novice. There is a saying that goes well: choice is greater than effort. If you urgently need to turn things around and recover, then you can follow Brother Feng and eat five meals a day! Long positions have already made profits 👇, the next trade has already been made public, just follow the operations as needed! 一起布局