Good morning 👋

Let's talk about something most traders never figure out.

The difference between a 50% win rate that loses money and a 50% win rate that grows an account consistently.

Risk to reward.

If you risk 1% to make 1% you need to win more than 50% of the time just to break even. But if you risk 1% to make 2%, you can be wrong half the time and still grow your account.

Here's what that looks like over 10 trades at 1:2 risk to reward.

5 wins at 2% = +10%
5 losses at 1% = -5%
Net result = +5% on your account.

With a coin flip win rate.

Most traders chase high win rates and ignore risk to reward.

The ones who last do the opposite. They focus on finding setups where the potential reward is at least twice the risk and let the maths do the rest.

Before you enter any trade today, ask yourself. What's my risk to reward on this setup?

Good session today. 📈