Many traders obsess over their win rate, believing that a higher percentage of winning trades equals more success.
But here’s the truth…
Win rate alone does not determine profitability.
A trader can win 80% of their trades and still lose money if their losses are too big.
On the flip side, a trader with only a 40% win rate can be highly profitable if their winners are significantly larger than their losers.
That’s where risk-reward ratio comes in.
Balancing how much you risk vs. how much you stand to gain, is far more important!
In fact, risk management is one of the most crucial aspects of being successful in trading!
Successful traders understand that it’s not about being right all the time—it’s about structuring trades with a positive expectancy.
A good strategy allows for controlled losses while being able to let winners run, ensuring that profits outweigh losses in the long run.
At NavigationTrading, we focus on strategies that balance win rate and risk-reward so you can trade with confidence—without worrying about trying to win every single trade.
Forget chasing high win rates…
Focus on the numbers that actually matter.
Here’s to trading smarter,
– The NavigationTrading Team
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