Big Profits and small losses

Yesterday was a very good example of how it is possible to have a number of losses and still make money overall. Here we had 4 short trades, two of which were losses and 2 profits. BUT because the losses were kept small at just -1R each and the Profits were larger than these at +2.4R and +3.4R, money was made overall, +2.4 -1 -1 +3.4 = +3.8R Profit overall.....

This is such an important point and it still amazes me why so many amateur traders still cannot understand this, you do not need to have a high % of winning trades to make money. What is important is keeping the inevitable losses small and Profits large.

Yesterday on the NQ was a perfect example of this, 2 losses and 2 profits and still you came out with a good profit at the end of the day.

Thanks, Steve