99% of people misunderstand the true meaning of "high profit-loss ratio."

When many people hear "high profit-loss ratio," the first four words that come to mind are: doubling profits.

They think that a high win-loss ratio means making ten times the money of others with just one trade; it is seen as a precise strike and a magical skill for explosive profits. It seems that as long as you find the perfect entry point, set a stop loss of 10 points and a take profit of 100 points, you can easily make a large sum.

But the reality is not that simple.

The real high profit and loss ratio is not to rely on a transaction to overturn the market, but to rely on long-term execution + discipline to work steadily. Its core is - "small losses and big profits", even if the success rate is not high, it can make a profit as a whole.

What does it mean? It means that even if you only have a 30% win rate, as long as you can make more than 3 times your money on each winning trade and strictly limit your losses on each losing trade, you can still make a profit.

But most people cannot do this. Because behind a high win-loss ratio is the need to endure the process of "frequent stop-losses."

High profit and loss ratio = low tolerance rate + high mental threshold. You must endure the impact of multiple stop losses without arbitrarily changing your strategy; even after being wrong in the first few attempts, you must execute the fifth time without hesitation, that is the mark of a true strong person.

So, a high profit-loss ratio is not about "making a lot every time," but rather "losing less, making more, and being able to afford losses." It is not a shortcut to getting rich overnight, but a strict way of thinking about trading.

Stop glorifying the "high profit-loss ratio"; the truly impressive ones are those who can stick to the logic of making small losses and large gains until the end.
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