Can't make money? If you don't talk about taking profits and cutting losses, what's the point of trading!

Whether trading can be profitable, talking about taking profits and cutting losses is at the core.

To achieve overall profitability, there are actually three key points:

Each loss ≤ 5% of total capital (losing too much makes it hard to recover);

Each profit > 5% of total capital (earning more than losing);

Win rate > 50% (not always losing).

As long as the profit-loss ratio is greater than 1 and the win rate exceeds 50%, you can make money in the long run.

Of course, it is also possible to have a high profit-loss ratio with a low win rate, or a low profit-loss ratio with a high win rate; the key is that the final profit must be positive!

But in reality, most people do the opposite: they run after making a little profit, but hold on stubbornly when losing.

The final result is that those who make money can't hold on to it, and those who lose refuse to admit defeat, causing their accounts to shrink!

The weaknesses of human nature, greed and fear, are the biggest enemies in trading,

So rely on strict capital management + trading discipline,

Otherwise, the market will eventually teach you a lesson.