The Pareto distribution is when 20% of efforts yield 80% of results. But in trading, this rule turns into something much stricter: 1% of trades accounts for 99% of profit, while the rest is noise, losses, and commissions.
Most people do not understand that the market is not a linear environment. The logic of "working hard equals earning more" does not apply here. The signal is what matters. And it happens rarely.
What does this mean in practice?
— You can sit for weeks catching garbage.
— And then one trade comes in that makes your entire month, sometimes even a quarter.
— The main thing is not to blow your account during the waiting period.
That’s why discipline and risk management are more important than any "indicator settings" or "super signals." Because you never know which trade will be the one from that 1%. And if you are not in the market at that moment — the profit will pass you by.
📌 Many beginners burn out precisely because they expect uniform income. Like "a daily salary from the chart." But the market is not an office. It’s chaos with rare pockets of logic. And when you learn to weather the calm and not panic in losses — that’s when you have a chance to hit that 1%.
