This image breaks down a simple risk-reward strategy in trading, emphasizing how profitability is possible even with a low win rate.
Key Points from the Image:
Risk/Reward Ratio: 1:4 (you risk 1% to gain 4%)
Accuracy: 40% (you win 4 out of 10 trades)
Outcome from 10 Trades:
4 wins × 4% gain = +16%
6 losses × 1% loss = -6%
Net Profit = +10%
It highlights how, with proper risk management and discipline, traders can stay profitable even with more losing trades than winning ones. The message emphasizes that trading is more about math and probability than prediction or luck. It's a motivational reminder that consistency and risk management can lead to solid returns, especially when trading with prop firms.
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