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This is my understanding too. Basically losing more often than winning on your bets.


It is possible to have more losing trades than winning trades and still come out ahead. It comes down to how quickly you cut losers and how disciplined you are at letting winners run (not taking profit too early). Risk management is critical to not losing your shirt in any market.

Conversely, it is possible to have more winning trades than losing trades and still lose money overall.




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