Many people fall into a vicious cycle when trading—obsessed with achieving a high win rate, afraid of missing any opportunity, resulting in repeated trades and ultimately losing everything. This mindset is actually misguided.
My win rate is only 38%. Less than 4 out of 10 trades are profitable. Sounds bad? But that’s not the real issue. Over five years, I achieved a leap in wealth, and the secret lies in one number: a 4.8:1 risk-reward ratio.
Simply put, risking 1 dollar each time, I can earn 4.8 dollars. So what if I lose more often than I win? In the long run, the odds are in my favor.
The essence of trading is actually quite brutal—it’s a game of probabilities, not precise predictions. Instead of pondering whether this trade will make money, ask yourself two questions: How much do I make when I win? How much do I lose when I fail? The former determines your ceiling, the latter determines how long you can survive.
Accept losses. This is not negativity; it’s clarity. Use small wounds to seize big opportunities, and controlled risk to pursue disproportionate rewards—this is the true logic of surviving and thriving in volatile markets like BTC and ETH.
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MetaverseHomeless
· 8h ago
Damn, this is the point I've been unable to understand all along... a low win rate can actually be profitable, this logic is truly brilliant.
Honestly, FOMO psychology is deadly, always thinking you can't miss out, but in the end, you end up losing even more.
The risk-reward ratio is the real lifeline. I used to focus only on win rate, which was my mistake.
What does 4.8:1 mean? It means one big win can cover several small losses. This mindset is so clear-headed.
Accepting losses is the winning mentality, I respect that.
Risk management > prediction accuracy, this phrase is valuable, brother.
It's not about winning every trade, but about being ruthless when you do win. Finally, I see someone explaining this thoroughly.
This article hit me hard. My previous problem was greed, always chasing perfect win rates, making life difficult.
The key is the risk-reward ratio. Why didn't I understand this before...
Small losses for big gains, sounds simple but takes a lot of courage to do.
Living in a volatile market is already tough, and still thinking about precise predictions—aren't you just asking for self-destruction?
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ETHReserveBank
· 8h ago
Wow, a 38% win rate leading to a five-year wealth leap? At first glance, this data seems indeed outrageous, but the risk-reward ratio is truly eye-opening.
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fren.eth
· 8h ago
A 38% win rate can also turn around, as long as you're not greedy or impatient. My biggest lesson is that I used to always chase perfect entry points, and as a result, I couldn't stop once I started. Now I focus on the risk-reward ratio, and losses have become my cheapest tuition.
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CoinBasedThinking
· 8h ago
Damn, a 38% win rate and I can still turn things around. I need to ponder this logic... Could it be that my trading frequency over the past two months is really a sickness?
This strategy of earning less and losing more sounds counterintuitive, but a 4.8x profit-loss ratio is indeed brutal. No wonder some can sustain for five years.
I'm exactly the kind of fool who chases high win rates, always trading recklessly every day. No wonder my funds are shrinking.
I feel most people die because of frequent trading; they don't even deserve to be in this market.
4.8:1, I need to remember this number and compare it with my recent trades...
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YieldFarmRefugee
· 8h ago
Can a 38% win rate turn around in five years? This risk-reward ratio is indeed incredible. I used to chase high win rates and traded every day until I wrecked myself.
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Exactly, small stop-losses with big profits are the key to survival. It's much more reliable than constantly studying candlestick charts.
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One key point—probability games are not about precise predictions. I used to try to predict every trade correctly, which led to even bigger losses. Now I understand.
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Risk-reward ratio > win rate. I need to get this tattooed on myself. Too many people have it reversed without realizing.
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The words about accepting losses hit home. I was too scared to lose at first, which actually caused me to lose more. Irony.
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Wow, 4.8:1. How strict must risk control be to achieve that? I need to carefully calculate my own ratio.
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But honestly, knowing and doing are two different things. Not many people can truly implement this logic.
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That's why most people lose money—they want to win every trade instead of focusing on this number game.
Many people fall into a vicious cycle when trading—obsessed with achieving a high win rate, afraid of missing any opportunity, resulting in repeated trades and ultimately losing everything. This mindset is actually misguided.
My win rate is only 38%. Less than 4 out of 10 trades are profitable. Sounds bad? But that’s not the real issue. Over five years, I achieved a leap in wealth, and the secret lies in one number: a 4.8:1 risk-reward ratio.
Simply put, risking 1 dollar each time, I can earn 4.8 dollars. So what if I lose more often than I win? In the long run, the odds are in my favor.
The essence of trading is actually quite brutal—it’s a game of probabilities, not precise predictions. Instead of pondering whether this trade will make money, ask yourself two questions: How much do I make when I win? How much do I lose when I fail? The former determines your ceiling, the latter determines how long you can survive.
Accept losses. This is not negativity; it’s clarity. Use small wounds to seize big opportunities, and controlled risk to pursue disproportionate rewards—this is the true logic of surviving and thriving in volatile markets like BTC and ETH.