10 people signed up today
When people first start trading, they focus on their win rate.
They try their best to have the highest win rate possible.
But contrary to popular belief, your win rate is not that important.
In fact… you can lose the majority of your trades…
And still make a profit…
If you just remember to do one thing.
So today, I’m going to break down what you need to focus on first before you focus on your win rate.
Every trade has a risk-return ratio.
This ratio is the amount of money you’re risking with each investment.
So for example…
A 1:1 ratio means you’re risking $1 to potentially make $1.
A 1:5 ratio means you’re risking $1 to potentially make $5.
If you just focus on trades that have good risk-return ratios, then you can profit even with a low win rate.
Which begs the question, what’s a good risk-return ratio?
Most people might say it’s 1:7… or even 1:10… but the answer is much lower than that.
So, let’s use the 26% win rate for example.
What does your risk-return ratio needs to be in order to profit with a 26% win rate?
By simply focusing on trades with a 1:3 risk-return ratio… you would profit with a 26% win rate.
But how do you find these 1:3 trades?
At Stock Navigators, we use Echo Mapping to locate these high-probability trades.
You can learn more about Echo Mapping in this special podcast, How to Use Echo Mapping to Spot Winning Investments Before They Take Off.
Echo Mapping shows you low-risk, high-reward trades before they start moving up.
It’s the foundation of the Stock Navigators trading strategy.
And right now you can watch this podcast, for free, to learn everything about Echo Mapping.
Stock Navigators has one mission - to help people improve their lives via trading. And it's all made possibly by our team of stay-at-home day traders who provide the most up-to-date analysis every single day. With over twenty years of combined trading experience, Stock Navigators helps you stay on top of the market.
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.