What percentage of trades should be profitable according to best practices?

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In trading and technical analysis, industry best practices generally suggest aiming for a win rate greater than 60% for trades to be considered profitable in a structured and systematic approach. A win rate above this threshold indicates that a trader is picking successful trades more often than not, which is crucial for long-term profitability. Achieving a win rate above 60% also allows for the possibility of maintaining profitability even if the average winning trades are smaller compared to the average losing trades, as long as the trader manages risk effectively with appropriate position sizing and stop-loss strategies.

Aim for a balance between the win rate and the risk-reward ratio. A trader with a win rate above 60% is in a favorable position to cover losses from any losing trades and still end up with a net gain, which aligns with the overall goal of trading successfully over time.

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