Why we lose money?

[Ethan.ishere]

Take a look at your history.
What is the reason behind most of your loses?
Have stopped it or you're still losing due to the same reason?

 

[Sekiyo]

Don’t follow the plan
Can’t wait for my price
Can’t let my winners breath
Can’t take my predetermined loss

These are … My 3 weaknesses

Often I front run my levels
Just to capitulate on my prices
Then the market reverses, move on.

Often I sell my winners too early,
Then I reenter at a worst price
The move has run its course..

Cutting loss isn’t necessary to win,
But it’s necessary to not lose, blow up.

What else ? …

Losing money isn’t a problem.
Losing more than you win is.

You can’t be paid without risk,
But the risk should be overvalued.
Meaning the payoff is unfair in your favor.

Some say … Love to lose
Don’t be bothered by taking a loss.
Assuming the loss is worthy but not detrimental.

The best loser, win.
Don’t make excuses.

You’re responsible of your own destiny.
If you don’t manage your risk …
You will NEVER make it.

Stop disrespecting yourself.
You little submissive piece of shit.

(Talking to myself)

Find your own faulty patterns,
Be aware of these, while trading
Sameness can’t yield different result.

 

[deaddog]

Take a look at your history.
What is the reason behind most of your loses?
Have stopped it or you're still losing due to the same reason?

Hope!! Hoping the market is wrong.
FOMO!! Fear that as soon as I sell the market will turn.

It stopped because I now focus on the process that has a proven edge.

 

[schizo]

Take a look at your history.
What is the reason behind most of your loses?
Have stopped it or you're still losing due to the same reason?

In the end, I think it boils down to this: they think they're actually better than they really are. They're always outwitting and outguessing themselves. Hence why they can't stick to their own plans. I'm no exception, sad to say.

Then they're are those very few who think they're dumber than their worth. Now these guys are true exceptions.

 

[Specterx]

Why do you lose money? It’s a zero-sum game, money gets transferred from
the accounts of the many to the few.

 

[smallfil]

Take a look at your history.
What is the reason behind most of your loses?
Have stopped it or you're still losing due to the same reason?

This is the reason traders try to automate their trading systems. It avoids human error/mistakes. That said, Victor Sperandeo said in one of his books that if you do most of the things right 80% of the time, you should do okay. We are all human and will make mistakes. If you minimize your mistakes, your performance as a trader will improve. You will still have losses because not every trade will be a winner, no matter how good the setups and even if you followed all your rules. Accept it. Trading is a game of numbers. Like the Las Vegas casinos, if you have a positive expectation or edge, you will win out in the long run.

 

[FTDK]

I stopped losing

You haven't stopped losing, at least not if you are truthful, nobody has a 100% succes rate in the financial markets.

 

[FTDK]

Staying in drawdown for longer than 2 days is stupid.

Can you back that with stats? I bet a lot of very successful investors and traders, probably a lot more successful than any of us here, would disagree.

2 days of draw down is absolutely nothing in the long run.

 

[David's faith]

My main reason why I lose is because I assume something to be a swing low or high before it turns out it isn't the high/low. Lol.

 

[danielc1]

I also have struggled a lot with what Sekiyo have stated. I think and belief trading is pure psychology. And that everyone can come up with an idea or plan to make a lot of money. It is the execution of that plan where the shit happens. People overestimate their skills and attitude to implement a plan. And they underestimate their own faulty belief system and how much impact it has on their plan. So they start changing the method or plan and in the hope it will change the results. They do not need to change the method or plan, they need to change them self. That is the biggest secret of the succes of all successful traders. They made a system that fits their personality or they made their personality fit the system. That is it.