Actually portfolio grows in values and has  positive return is the most important. 


Consider 

1. High  rate of small wins but 1 big loss that erase all the wins

2. High rate of small losses but 1 big win that more than cover the small losses.


When those investor workhops talk about the important of high win rates, it hinges on the assumption that each investment is based on a same amount. In real life, we know it is not possible. 

We read about Berkshire Hathaway magnificent return but this requires an investor tremendous patient to not cash out. How many can actually do that.  And how many can wait for that day to come? Depending on your age and year of entry,   you might be in your senior years to enjoy the profits and hopefully, you are well enough to do that.

Based on what most of the people comments, write and do, I sensed that there are many 'traders'  hoping to make quick bucks, make small returns, or small incomes. Hopefully, their luck don't run out and can continue to stay sane and true to what they do. Such trading activity can be tiring at times. High turnover benefits the intermediary and the service providers, u know who right? :)

I have come across GREAT investors that used different techniques to profit from Mr Market. However, the technique may not be suitable to everyone or window opportunity is already gone.

Those Great one are unlikely here cos the y are simply making money quietly without telling people. 

While reading books like Value Investing by Benjamin Graham, Rich Dad Poor Dad by Robert Kiyosaki, One Up on Wall Street by Peter Lynch, the Turtle trader, Technical analysis book etc will broaden your understanding and widen your scope.  

Nothing will beat your own experiences to craft out what work for you and what are your principles on investing. 


So to sum up : the subject title is really irrelevant to me.

Actually portfolio grows in values and has positive return is the most important. 

# High Win Rate vs. High Profit: Which One is More Important?

Modify on 2024-06-23 23:56

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