As others have said, professional wrestling is "fake" insofar as they're not really looking to hurt each other. What you see is the product of wrestling minds trying to put together as entertaining a match as possible. This looks different from wrestler to wrestler, and to varying degrees of success. Generally the most successful wrestlers are the ones who deliver entertaining matches on a consistent basis.
As to whether or not it translates to winning a match or a championship, that's where booking comes into it. Again, as others have pointed out, "booking" means someone making these decisions. If it's a match that doesn't mean much, you don't need Vince McMahon to call the shots. You have writers and agents putting the matches together. The actual matches are usually called in the ring. Wrestlers conceal as much as possible telling each other what happens next in a match. Sometimes "spots," impactfull moments, are determined ahead of time, especially if one of the wrestlers has a particular story to tell. Only occasionally, or apparently all the time if you're the late "Macho Man" Randy Savage, will an entire match be planned out in advance.
Wins and losses typically occur to advance storylines. Sometimes a wrestler will go on an extended losing streak as a form of punishment. Sometimes a wrestler will be elevated to championship level abruptly (JBL and Jinder Mahal are two famous examples) despite not previously been considered to be or presented at that level. They will be booked in such a way that hopefully makes it seem credible, although fans don't often understand or care why this happens.
All this is to present as engaging a product as possible. "Faces," or good guys, will typically have to work toward their big victories while "heels" will typically get a lot of cheap victories. Faces tend to win the big matches, and heels lose them. That's the whole point. It's designed to give that big victory all the more impact, because it seems the face will never get to prevail, so when he does there's that much more reason to celebrate. Think Daniel Bryan at WrestleMania 30 (although it could be argued that WWE went overboard with his underdog story, pushing Bryan too hard and thus compromising his in-ring career).
Another thing that's difficult to grasp is wrestlers who are hard to categorize. Bray Wyatt is a heel but he's embraced by fans as a face. He's unquestionably a heel, but fans want to see him succeed in ways heels typically don't. You see someone like Triple H or Randy Orton have widespread success as heels with multiple championship runs, and then someone like Bray, who the one time he was WWE champion was booked, well, as a heel, who was always going to lose his title in the big match, against someone (Orton) who had inhabited much the same role he does, but worked harder to change it up and thus meant more to the company. And you have people like John Cena and Roman Reigns, who are booked as faces, whom fans hate to see win. Maybe because they DO win too often? Where Cena develops the reputation of Big Match John, where he's got that Hulk Hogan ability to beat anyone, Reigns is always booked to have to fight for his wins, in his big matches. In that sense, we return to the way these matches are put together. WWE has been booking Reigns as an underdog in a world where Cena and Brock Lesnar still exist. He's never been presented to be at their level. Cena is constantly booked as having to silence his critics, even his peers, but getting a win against him is still difficult, and more often happens as a surprise than something his opponent gets to earn. And Lesnar has been granted an altogether singular status. Getting a win against HIM has become virtually impossible, unless there's a story he wants to tell, as with his recent feuds with Undertaker and Goldberg.
Anyway, hope this helps.
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