I have sometimes read that many traders have about a 50/50 win/loss ratio but still manage to do good because the winners are so great and the losses are cut short.
However, I also come across the view that a higher ratio of wins to losses is better, for obvious reasons.
I'm a little confused as to what to think about win/loss ratios. Should I strive to have a higher amount of profitable trades than losses or should I just focus more on letting the profitable trades ride and cutting the losses short?
My gut feeling is that it comes down to the individuals trading strategy, MM and such but I'd definitely like to get some others' opinions.
Thanks,
Mike
However, I also come across the view that a higher ratio of wins to losses is better, for obvious reasons.
I'm a little confused as to what to think about win/loss ratios. Should I strive to have a higher amount of profitable trades than losses or should I just focus more on letting the profitable trades ride and cutting the losses short?
My gut feeling is that it comes down to the individuals trading strategy, MM and such but I'd definitely like to get some others' opinions.
Thanks,
Mike