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Why you keep losing money in trading

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farai223

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There are variety reasons why man people keep losing money on these synthetic binary.com indices it can be due to lack of good strategy, poor trading mindset, perhaps lack of good capital, etc but some people have it all they have a good trading capital, right trading mindset and killer strategies but still they keep losing money on and on. Don’t get me wrong here, am not saying they don’t make any profits, no! but they make super profits for a while then a losing streak starts and their account gets wiped out. In essence losses>>>profit which isnt good anyway. If you don’t believe me jus go to your indices trader friend and look at their profits and losses history you will be surprised by the reds and negatives u see. Why!? Cause they lose much than what they gain.
 
There are variety reasons why man people keep losing money on these synthetic binary.com indices it can be due to lack of good strategy, poor trading mindset, perhaps lack of good capital, etc but some people have it all they have a good trading capital, right trading mindset and killer strategies but still they keep losing money on and on. Don’t get me wrong here, am not saying they don’t make any profits, no! but they make super profits for a while then a losing streak starts and their account gets wiped out. In essence losses>>>profit which isnt good anyway. If you don’t believe me jus go to your indices trader friend and look at their profits and losses history you will be surprised by the reds and negatives u see. Why!? Cause they lose much than what they gain.
Thanks Farail, you are right
 
You will lose money if you don't follow a plan and stay organised during the trading process. Many newbies continue to trade even when they lose, this can cause an increase in risk. Learning from mistakes only helps traders get smarter at making decisions.
 
I believe that traders are unaware of the time and effort required to master forex trading and this is why they lose. It takes a tremendous amount of discipline and effort to maintain consistency once you get into the market. The majority of people lack these skills and eventually lose.
 
There are variety reasons why man people keep losing money on these synthetic binary.com indices it can be due to lack of good strategy, poor trading mindset, perhaps lack of good capital, etc but some people have it all they have a good trading capital, right trading mindset and killer strategies but still they keep losing money on and on. Don’t get me wrong here, am not saying they don’t make any profits, no! but they make super profits for a while then a losing streak starts and their account gets wiped out. In essence losses>>>profit which isnt good anyway. If you don’t believe me jus go to your indices trader friend and look at their profits and losses history you will be surprised by the reds and negatives u see. Why!? Cause they lose much than what they gain.
Have proper money management.
 
There could be ample reasons why traders lose money, the main reason being they trade without a plan, which leads them to impulsive decisions and they lose their focus. Managing risk and time is equally important, traders need to make sure they place stop loss as they begin. The risk is always high so any measure taken to lower it will help them gain their profit returns.
 
So many factors can cause someone to lose, from poor experience, to a bad strategy, to emotions, laziness, lack of discipline, and the list goes on. I think each trader needs to really look at each of these things and figure out where they're struggling to work on it one thing at a time.
 
There can be numerous reasons. Like:

1. You may be trading too frequently- If you're making a lot of trades, you're likely to incur more transaction costs, which can eat into your profits.

2. You may be holding onto losing positions for too long- If you're not cutting your losses quickly, you're likely to see your losses grow larger.

3. You may not be diversified enough- If you're putting all your eggs in one basket, you're taking on more risk than necessary.

4. You may be trading with too much leverage- Leverage can help you maximise your profits, but it can also magnify your losses.

5. You may not have a well-defined trading strategy- Without a clear plan, it's easy to get caught up in the emotions of trading and make impulsive decisions that can cost you money.
 
There are some reasons for this!
- It could be that you're not cut out for trading, or that you're not following a solid strategy.
- It could also be that you're not managing your money properly, or that you're letting your emotions get in the way of your trading.

Whatever the reason, if you keep losing money in fx trading, it's important to figure out why so that you can make changes and improve your results.
 
Most of the traders lose money in the forex market because of the following reasons:

  • They enter the market without preparing themselves with the knowledge & experience.
  • They do not have a trading plan.
  • They revenge trade or over trade.
  • They have not back tested their strategy.
  • They do not use a proper profit/loss ratio.
  • They continually change their trading strategy.
  • They are greedy and stay in a trade too long.
  • They are undisciplined and impatient.
 
There are variety reasons why man people keep losing money on these synthetic binary.com indices it can be due to lack of good strategy, poor trading mindset, perhaps lack of good capital, etc but some people have it all they have a good trading capital, right trading mindset and killer strategies but still they keep losing money on and on. Don’t get me wrong here, am not saying they don’t make any profits, no! but they make super profits for a while then a losing streak starts and their account gets wiped out. In essence losses>>>profit which isnt good anyway. If you don’t believe me jus go to your indices trader friend and look at their profits and losses history you will be surprised by the reds and negatives u see. Why!? Cause they lose much than what they gain.
Not proper risk management and one of major reason is greed, risking more
 
The top reasons traders fail are:

  • Lack of proper knowledge and experience.
  • Poor trading skills
  • Incapability of using stop loss and risk management.
  • They want to make profit quickly.
  • They repeat trading mistakes every time.
  • Expecting big returns with a very small starting capital.
  • Greed and fear.
  • They don’t have a clear strategy.
  • They keep unrealistic expectations.
  • They’re not disciplined or patient.
 
You lose and then you learn. it is going to happen whether you like it or not. Learning from your mistakes can help you become a wise trader. People lose because of lack of understanding of the market sentiment which is important while analysing and picking a profitable opportunity.
 
People lose due to many reasons but the main one could be less knowledge about the market functionality and sentiment and no plan to follow. This often leads to empty accounts quicker than actually losing. It is very important to stay organised and try to pull in profit as much is possible.
 

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