Losing money consistently
- Thread starter zbojnik
- Start date
U provide no details but I will offer a few guesses
1. You are trading on too small a time frame, so transaction costs are eating you alive and creating losing trades.
2. Your stops are very tight relative to market volatility,
3. Your profit target is much larger than your stop loss, so you will have a poor winning percentage which makes 11 losses in a row not unexpected
3. Your trade location is not advantaged or is even disadvantaged
It is very likely to be a combination of these four things.
1. You are trading on too small a time frame, so transaction costs are eating you alive and creating losing trades.
2. Your stops are very tight relative to market volatility,
3. Your profit target is much larger than your stop loss, so you will have a poor winning percentage which makes 11 losses in a row not unexpected
3. Your trade location is not advantaged or is even disadvantaged
It is very likely to be a combination of these four things.
Then you must accept ONLY what the market offers.
11 losers in a row indicates you reject the market gives. Failure to recognize. Failure to adapt.
If you are limiting loss by closing your trades you are managing losers.
If you are not managing your winners by taking profits then you will pretty much just lose.
Human nature
To second guess / try and out think
To not accept losing till the pain too much
To be greedy and exit winners too quickly
Distills down to ego..., actually
Fix those (it) â be a whole lot easier making money than losing it
RN
Brokerage commission and bid/ask automatically sets you back. Retail in/out trading increases your transactional costs. Human emotion getting in and out at exactly the wrong times exacerbates losses. How do you think HFT makes its money?
If you know markets are dead...why are you trading those markets
Simply, you should trade markets that are NOT dead or stop trading until markets are alive for you to trade it. My suggestion should have already been obvious to you.
good traders know when not to trade.
Its easy to lose money because you have fear.
Fear is eating away your account.
To dispel fear, you have to understand probability and accept uncertainty.
Do you have an edge? I certainly hope you do. When you see your edge appear on your chart, hit the button, don't think just hit it, if it goes your way stay with it, if it goes against you cut it at some predefined loss limit you've set, usually when the trade fails technically.
When you are in a trade are you excited when the trade goes in your favor or fearful when it goes against you? If the answer is Yes! Then THIS IS THE PROBLEM.
Its only one itty-bitty trade. Don't sweat it, its a random event. Only when you reach the point of having little or no emotion during trading that is when you will consistently make money. Can't get there in weeks or months. Trade small, learn this!