This is my deepest feeling over the years: newcomers to the market always want to discover some ultimate approach, demanding high win rates, large profits per trade, and daily earnings. But reality will teach you harshly that these three things cannot exist simultaneously.
There is an eternal contradiction in trading—win rate, risk-reward ratio, and trading frequency. These three dimensions are like a cursed combination; at most, you can satisfy two of them at the same time.
Imagine the daily life of a day trader: they pursue high win rates combined with high trading frequency. The result? Each trade’s profit margin is squeezed very small, earning only hard-earned money. The most terrifying part is that a sudden large drawdown can wipe out a month’s worth of profits.
And what about those who aim to catch bottoms and sell tops precisely? They target a high risk-reward ratio combined with a high win rate, which sounds perfect. But at what cost? Opportunities are scarce. You have to spend a lot of time waiting for those few truly worthwhile entry points, which is an extremely tough test of patience and capital.
There’s also a group that chooses high risk-reward ratio combined with high frequency—trying to compensate for quality with quantity. Guess what? Their win rate will plummet significantly. They rely on frequent trial and error to find the rhythm, using multiple small losses to make one big gain. This path is full of noise and volatility.
The problem isn’t which strategy is superior. Each path has people who can profit steadily through it. Some rely on disciplined small trades to accumulate gradually, building a profit curve step by step; others excel at low-frequency, heavy-hitting trades, waiting patiently for trend explosions.
Truly mature traders are never about finding some legendary Holy Grail. They simply see one thing clearly—what costs they can accept and what they must give up.
Some are naturally suited for high-frequency trading, able to handle that rhythm and noise interference; others need long waiting periods, but once they act, their hit rate is very high. It’s not about who is smarter, but about the compatibility of personality and risk tolerance.
Rather than chasing perfection in vain, it’s better to find a trading path that suits your personality and risk acceptance. That’s the reliable way to live.
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Stop dreaming about finding the perfect strategy.
This is my deepest feeling over the years: newcomers to the market always want to discover some ultimate approach, demanding high win rates, large profits per trade, and daily earnings. But reality will teach you harshly that these three things cannot exist simultaneously.
There is an eternal contradiction in trading—win rate, risk-reward ratio, and trading frequency. These three dimensions are like a cursed combination; at most, you can satisfy two of them at the same time.
Imagine the daily life of a day trader: they pursue high win rates combined with high trading frequency. The result? Each trade’s profit margin is squeezed very small, earning only hard-earned money. The most terrifying part is that a sudden large drawdown can wipe out a month’s worth of profits.
And what about those who aim to catch bottoms and sell tops precisely? They target a high risk-reward ratio combined with a high win rate, which sounds perfect. But at what cost? Opportunities are scarce. You have to spend a lot of time waiting for those few truly worthwhile entry points, which is an extremely tough test of patience and capital.
There’s also a group that chooses high risk-reward ratio combined with high frequency—trying to compensate for quality with quantity. Guess what? Their win rate will plummet significantly. They rely on frequent trial and error to find the rhythm, using multiple small losses to make one big gain. This path is full of noise and volatility.
The problem isn’t which strategy is superior. Each path has people who can profit steadily through it. Some rely on disciplined small trades to accumulate gradually, building a profit curve step by step; others excel at low-frequency, heavy-hitting trades, waiting patiently for trend explosions.
Truly mature traders are never about finding some legendary Holy Grail. They simply see one thing clearly—what costs they can accept and what they must give up.
Some are naturally suited for high-frequency trading, able to handle that rhythm and noise interference; others need long waiting periods, but once they act, their hit rate is very high. It’s not about who is smarter, but about the compatibility of personality and risk tolerance.
Rather than chasing perfection in vain, it’s better to find a trading path that suits your personality and risk acceptance. That’s the reliable way to live.