Nowadays many new and experienced traders are suffering from this problem. In the market, a lot of traders are losing their hard money in the market. There are many reasons to lose money like lack of knowledge, lack of confidence, and many more.
We have seen many traders who want to earn money initially but don’t want to learn. After getting some profit from the market, the trader becomes overconfident, and due to this, the trader starts trading in huge quantities. That causes huge losses for traders.
In this post, we will learn how to overcome losing money. There are many setups to learn but in that post, we have highlighted some important points that will help to grow you in the forex or your trading market.
Loss is part of the game, but if the loss rises then the emotions has opportunity take the position in to trader’s mind. By this trader starts trading in huge lot sizes to cover the previous loss but in opposite the trader gets more loss.
So that post is for you to learn something new. That will real help to learn something new.
Table of Contents
Staying in losing trades
We have seen many traders hold their positions for a long time on the lose side. If you don’t have a proper risk-reward ratio you will close your position to the loss side.
The trader must place a stop-loss order on the system. If the trader has set his order in his mind, then that stop will never hit. So, traders hold their position for a long time.
There are many things to consider by the trader while holding their position on the loss side. First If you have good knowledge and a good grip on the chart, you can maintain your position.
Sometimes traders hold their position in the hope market will cover the loss and come back in their profit size. But for your information, nothing happens like that because the market will not come to your trade price until you cut your position.
No trading plan
Trading without a trading plan is inviting to bear in your trading account. Several traders do trade without a trading plan. We know well that without any plan going into trade is too risky. Traders may lose their accounts in a single trade.
The plan helps us to make trade easy because before planning traders have done all the process of the trade. Suppose you have not decided how to trade then how you will jump in the trade. Trading is not complicated but traders make it complicated by using unnecessary indicators and following useless people.
Planning helps to predict the market and what scenario can happen in the market. For creating a plan trader needs to know which analysis the trader can use for future prediction of the market movement. In the market, there are two types of analysis: first is technical analysis and second, is fundamental analysis.
Overtrading is cause for losing their money in the market
This is the root of losing money in the market. We can call it the graveyard of undisciplined traders. Sometimes the trader gets lost in the market, many traders don’t like loss so they start taking trade without proper study and analysis. That will cause huge losses and be called overtrading.
It’s a very bad habit of traders because once the trader covers the loss from the market then the trader starts to run after to cover the commission in the market. That is why traders start taking a position without any reason and without measuring the risk in the market.
Sometimes overtrading takes control of the trader’s mind because traders are emotional people so the market can easily take control of the trader’s mind. Once the overtrading takes control of the trader then the trader starts to take impulsive trade and ignores the trading plan.
Hoping for your trades to play out
Sometimes traders hold their position for a long in the Loss. Because they believe their trade will come back and give profit to them. So that’s why they hold their position for a long time without worrying about their position.
Many times, the market comes back to the trader’s Favour and sometimes we have seen the market run against the trader’s position many times. The trader must use a stop loss. Hoping for trade to play out is indirectly inviting emotion to take over the control of the trader.
That is the most popular reason for losing money in the forex, crypto, and stock market. The market never comes back to your price so a trader should book their loss. If you did the technical analysis last time then you can hold your position otherwise it’s risky to trade.
No discipline
Without discipline, a proper plan and study don’t work. If you are an undisciplined trader you must know that you will become a loser, not a trader.
We have traders who don’t like to follow proper plans with discipline. Trading without discipline is impossible if you take a trade without discipline and do not know what result will come from that trade. You will get losses regularly in the market.
Now to point come to know how to follow proper discipline in the market. It’s hard to tell you because many traders don’t like to follow proper discipline to make money in the market. If you are serious you need to create a proper plan according to your study. If you do not have a proper plan then you may be a properly disciplined trader.
Rising to much
Sometimes we like to rise too much in the market. But it is not possible every time. Traders make that mistake often because they are not aware of how to hold their position in the market.
Rising means when you get a success and start moving in the market for the long run it’s called rising. Sometimes a trader feels overconfident in that kind of section which causes loss.
Traders must give priority to the market because they know everything. In the market, if we want to survive for long then we must follow the market, not anyone.
