Winning rate or profit-loss ratio, which one do you value more?

I value win rate more. The profit-loss ratio can help guide investors in building a better risk management strategy when taking risks, but it may require a long-term investment of many in order to collect enough data to evaluate its effectiveness. The winning rate is an indicator that good investors can consider in short-term investments. It can better measure investors' investment returns and help them better control risks.

For example, assuming an investor is interested in a certain stock, he can first consider the winning rate to determine whether its investment income is stable enough. If he finds that the winning rate of this stock is relatively low, he can choose to abandon the investment without taking any risks. On the other hand, if he finds that the stock has a high win rate, he may consider continuing to invest and may use the profit-loss ratio metric to measure the effectiveness of his risk management strategy.

Take Facebook stock as an example. Between January 1 and April 30, 2020, its win rate was 63.0% and its profit-loss ratio was 1.95. This shows that Facebook stock has outperformed during this time period, with earnings exceeding 2x losses. This is a very good investment opportunity for investors, but they still need to consider the following risks: stock market volatility, political changes, and Facebook's future financial health.