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Dare to trade. Dare to win.
Is the winning rate or the risk-reward ratio more important in the trading market?
Profit/Loss Ratio: The ratio of profit to loss, a higher profit/loss ratio means more profit when profitable and less loss when losing. Even with a low win rate, as long as the profit/loss ratio is large enough, long-term trading can still be profitable. For example, if profit is three times the loss each time, even with only a 30% win rate, overall profit is possible.
High win rate: The proportion of profitable trades to total trades is high, which can give investors more confidence and accumulate profits quickly. However, in reality, it is difficult to maintain a high win rate, and in pursuit of a high win rate, setting narrow stop-loss and take-profit levels may limit profit potential.
In conclusion, when trading, one should not only focus on one factor, but balance the relationship between the two, combining one's own trading strategy, risk tolerance, etc., to determine the appropriate trading method.