The win-loss ratio directly determines how long you can survive in the market! If you keep focusing on the win rate, sooner or later, you'll suffer a big loss.
My principle is simple: only engage in opportunities where losses are small and gains are large, for example, if you make one dollar, the corresponding loss must be at least sixty-six cents. The win-loss ratio must be kept above 1.5:1; this bottom line must not be broken!
How exactly to operate?
The stop-loss must be set at a critical position; don't use those vague wide stop losses. For example, when the price just breaks through an important resistance level, enter the market when it retraces for confirmation, and set the stop-loss a few points below the breakout point, so that losses are clear and understandable. Take profit must also be managed properly, you must follow the trend structure; if you need to reduce your position in batches, do it, don't always think about capturing every fluctuation, or you'll end up giving back all your capital and profits.
Let me be honest with you, those who boast about having an 80% win rate all day are either liars or fools! What the market lacks is short-term luck, but those who survive in the long term rely on big profits and small losses. Even if you only get four out of ten trades right, as long as each of those four trades earns three times, while the remaining six trades only lose one time each, you can still end up laughing. Therefore, before entering each trade, you must calculate the win-loss ratio clearly. If a trade does not meet the standard, regardless of the pattern signal, just push it aside!
Finally, let me say something harsh: the dumbest behavior in this market is to move the stop-loss further away just to earn a few more points, or to give up high win-loss ratio opportunities just to maintain the win rate.
Anyone who does this should close their account and exit early; don't wait until you've lost everything before regretting it!
I am XINBI, follow me, with top team support, only serving ambitious madmen.
Day trading focus: SPK ETH BTC BCH
