Achieving success in the financial markets goes well beyond simply putting together long winning streaks. The sheer frequency of your victories is not the true measure of your trading skill. Instead, the real focus should be on the financial size of your gains compared to the size of your setbacks.

To illustrate this concept, imagine you execute a total of 20 trades. Out of these, you manage to win 15 times and bring in $100. During the same period, you hit your SL on the remaining positions, meaning you have lost 5 times and lost 30 in the process. Because your positive returns surpass your drawdowns in this scenario, you are genuinely a profitable trader.

Now consider an alternative situation where you also enter 20 trades. You might experience an incredible success rate, managing to win 19 of them. If those 19 trades gave you $200, your performance might look excellent at first glance. However, if you lost 1 trade and that single failure took $500 from your account, your overall balance would be negative. Despite the high volume of successful positions, this outcome proves you are not a profitable trader yet.