Today $ETH hit two stop-losses in a row, cutting a total of 45 points. But then things turned around—the monkey market finally came through, with a peak unrealized gain of nearly 80 points. Not only did I make back all the losses from earlier, I even made a small profit.
That's the beauty of risk-reward ratio: one good trade can easily cover the losses of several bad ones. I never put my faith in win rate; making money is all about widening that ratio gap.
But there's a strange phenomenon—why are you always around when it's time to cut losses, but nowhere to be found when it's time to take profits? That mentality is really worth pondering. In trading, your psychological account is even harder to manage than your technical analysis.
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Today $ETH hit two stop-losses in a row, cutting a total of 45 points. But then things turned around—the monkey market finally came through, with a peak unrealized gain of nearly 80 points. Not only did I make back all the losses from earlier, I even made a small profit.
That's the beauty of risk-reward ratio: one good trade can easily cover the losses of several bad ones. I never put my faith in win rate; making money is all about widening that ratio gap.
But there's a strange phenomenon—why are you always around when it's time to cut losses, but nowhere to be found when it's time to take profits? That mentality is really worth pondering. In trading, your psychological account is even harder to manage than your technical analysis.