The Secrets of How Trading Masters Make Money
If you understand this, you’re probably already profitable. If you don’t, keep reading after you blow your account.
Secret #1: The Win-Loss Ratio (Profitable Trades vs. Losing Trades)
Many wonder about the win-rate of top traders. Through philosophical and mathematical analysis, I’ve found that the win-loss ratio depends on stop-loss placement:
-
If the stop-loss is set at zero (e.g., buy at 1000, exit at 999 if it drops 1 point), the ratio is 50:50.
-
The wider the stop-loss, the higher the win-rate.
My conclusion: With a zero stop-loss, trading pros are no better than you. The real difference emerges when stops are widened slightly—but the gap is small, just 10-15%. For example, a 5-point stop in soybeans for scalping, or 30-point for swing trading.
Secret #2: How Do Masters Profit?
-
Super scalpers: Rely on many small wins to offset few big losses.
-
Wider stops boost their win-rate, but also increase per-trade risk!
-
-
Swing traders: If stops are too tight (e.g., 20 points in soybeans), their ratio may be awful (30:70 or 20:80).
-
But if they catch the big trend, the payoff is worth it.
-
Secret #3: Why Are You Losing Money?
The answer:
-
You don’t cut losses, so losses grow infinitely.
-
You take tiny profits, so gains are trivial.
Big losses + small wins = guaranteed account blowup.
Final Verdict
The analysis skill gap between amateurs and pros is just 10-15%. The real difference?
-
Losers set stops too wide (or don’t set them at all) and take profits too early.
