Livermore's words are profound: the market does not reward based on accuracy; it only recognizes the profit-loss ratio.

Recently, I came across an interesting case. A trader's performance over the past month - 17 trades with only 5 winning trades, a win rate of 29.41%. At first glance, it seems like a loss, right? However, the account net profit is $75,668, with a maximum drawdown controlled at 26.35% and a Sharpe ratio of 2.72.

This matter is actually not complicated. His approach can be summarized in three words: wait, endure, and run. It’s not about watching the market every day for opportunities, but rather waiting for the market to truly provide a trend signal before taking action. During a consolidation period, it’s better to stay in cash and do nothing than to open positions randomly for excitement. Once the direction is established, losses are strictly limited to a predetermined range; as for the profitable positions? Just let them run, until the trend is fully played out.

Let's compare the operations of most of us: we want to catch every order, and as soon as we make a small profit, we rush to take it, but when we're stuck, we hold on and refuse to cut losses. In the end, the win rate on paper looks pretty good, but the actual account is losing badly. To put it simply, we've done the opposite of what we should: take small profits and run, but hold on through big losses.

In December, the market is characterized by sideways fluctuations followed by large volatility, which tests one's discipline the most. Relying on gut feelings and shooting from the hip will lead you astray nine times out of ten, being driven by emotions. True stable trading is not about how accurately you can predict the market, but whether you have a reliable system in place: when to act, what to do when you incur losses, and whether to hold or exit when you make a profit—all these rules must be established in advance.

This high risk-reward ratio strategy with strict stop-loss has been running for over a month, and the data is there. It's not a myth; it's a verifiable execution system. The question is whether you are willing to give trading authority to discipline rather than to the current anxiety or greed.