The key to sustainable profitability lies in two fundamental principles: cut your losses fast, before they balloon into real damage to your portfolio. At the same time, let your winning trades breathe and grow—don't rush to close winners too early just for a quick gain. This approach naturally builds what traders call a positive risk-to-reward ratio. When you lock in small losses and allow big winners to compound, your win rate doesn't have to be perfect to end up profitable. It's not about winning every trade; it's about winning bigger when you're right and losing smaller when you're wrong.