Let’s be honest. Getting stable returns as a trader is not easy. A lot of people who have entered the financial markets will leave empty-handed or even worse — lose their money. There is a number of reasons for that: some people don’t take trading seriously, others view it more as an entertainment rather than hard work, the rest simply lack the desire to learn and acquire new skills.
Why do you keep losing money and, most importantly, how to manage your losses? Hopefully, after reading this article you will have an answer to each of these questions.
Being ‘too smart’
Being too smart is hardly the reason why you keep losing money. After all, it is the intelligent traders who are more successful on the financial markets. Believing you are too smart, on the contrary, could get ugly.
What do most “smart traders” do? They believe they can beat the market, which in fact happens quite rarely and usually should be attributed to luck, not skill. In reality most of them enter the deal at the least appropriate time and end up with a position that is destined to lose.
Very few people out there can boast the ability to outsmart the entire market. Stay humble, trade with the trend and do not go against it — this is what a lot of successful traders believe in. Instead of beating the market try to embrace it and understand it.
Being emotional
Trading is not like life. In the financial markets, positive emotions don’t bring you happiness. Both positive and negative emotions should be avoided, as they are quite likely to hinder your trading progress. Try to remain calm and cool-headed. It helps a lot.
Greed, the vice that has deprived many traders of their well-deserved earnings, is no different from excessive joy or tilt. Being able to stop when your trading systems tell you to is another skill you will have to learn in order to improve your trading results.
No risk management
You can bet all your money on a single trade and you may even win. But after a deal or two, you will eventually lose, and lose big. Unlike those who practice proper risk management and, therefore, lose a share of their trading capital, you can lose the entirety of it. No funds = no trading.
Conservative investors believe you are not supposed to allocate more than 2% of your trading capital to a single trade. Go for 5% if you feel lucky. But under no circumstances allocate 100% of your funds to “the deals that will win for sure”.
Trading with a robot
There is no single winning strategy and there is no robot that can yield tangible results in the long-run. All the people offering you a one-time discount ‘SuperTrader 3000’ are scammers. After all, who in his right mind would sell a robot that can always win? Isn’t it a good idea just to keep the goose that lays the golden eggs in secret and speculate on it? Better dedicate the time that you could have spent to look for a working robot online to education and trading on a practice account.
Adding to a losing position
You can’t even imagine how many traders keep adding to a losing position. It is indeed unsettling to see your position melting down as you nervously stare at the screen. Yet, there is a better decision than throwing in more money. Consider cutting your expenses instead. When you see the trend turning against you, an immediate exit is oftentimes the best decision. If you still find it emotionally difficult to do, reread the “Being emotional” part once again.
Trade now
I have read the article and input in my mind.. true i was so hard headed.. and act an idiot… I was not practicing and understand the flow of trading… Hope you could forgive me for what i have act and said… Im not promising that i can make perfect but i can be profecional of it.. still i want to trade and learn… I know im still far to saccess… Thank you for your enlightenment…
Boa!
Good, I learned more by this. Thanks
😉
We’re happy you’re staying with us, dear Ramon. Your support is very important to us! 🙂
This article is helpful. It is true that i do not practice first before trading, i feel so nervous and i am going against the trend instead of embracing it. I will try to be cool and settle my emotions before trading next time.
Thanks for you feedback! We wish you much success.
Many thanks for continued support..
We’re always at your entire disposal. Thanks for your feedback.
First I want to withdraw if it’s successful than solve my problem and than I will take actions
Thanks a lot for this article
You’re always weclome
Thanks too Ifeanyi
Thanks for this awesome message that you’ve share a motivational for the trader’s like me.
We’re always at your entire disposal. Thanks for your feedback.
Thanks for a lot for this article, it gives me great pleasure to know that I am with a broker that cares about me
Thank you for the nice words! Your satisfaction is our reward.
thanks i have read this article and i will apply this risk management.
Thanks a lot for the article! I ealy appreciate you.
All the contents on the article are 100% true.
Now I can learn my lesson from the article and made adjustments.
Have won and loose capital woefully…
Thanks.
James from Uruguay.
Thank you fot this article IQ Option team. I was moved by the contents. This are the attitudes that one traders must posses. Thank you very much.
Thanks for your support all the way through! Have an awesome day, Francis!
We’re happy you’re staying with us, James. Your support is very important to us! 🙂
Thanks for your support all along! We will keep working to provide the best user experience! 🙂
True
Definitely worth the read, thanks a mill!
You’re so welcome 🙂
Thanks !
😉
It’s True
Same strategy same broker on the demo its okay you do well my be 73-75%.
On a live account I never went in hell and no one went and came back but i can assure you it feels like you in hell.
Losing will never be normal we mot blinde, what make it different in live account sudden reversals something wrong about IQ i am sorry say that.
We are sorry not all of your trades turned out to be profitable. In most cases, a psychological factor affects users when they switch from demo to a real acсount.
People make different decisions when it comes to trading with their own money after they have traded with virtual on a demo account.
If you have questions regarding some trades in specific, feel free to contact us via support@iqoption.com.
Indeed its true… Thanks and Appreciate..
You’re more than welcome 🙂
Thanks for the info man!
You’re so welcome 🙂
Thanks for the article, it helps me a lot to develop more learning and skills, please do send more articles.
We’re always at your entire disposal. Thanks for your feedback.
am very much proud to lead to lead this article it is very updating keep updating too
We’re always at your entire disposal. Thanks for your feedback.
Its goood idea
Hello friend!
We wanted to thank you for your kind words. Have a nice day.
thanks brother
Hello friend! Hope you are having a nice day!
You are always welcome Tsepo :). Have a nice day.
Greeting from Somalia, I read very well and understand what you said is helpful and I have seen several times I will keep reading your articles in order to reach the goal.
I welcome any father information and any one who can help me in this trading.
Thank you
Hello Dear, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
Thanks,but there is a problem with your platform on a demo account my strategy work but when i use the same strategy on a live account i am losing !!!!!!!!!
Hello Collins! How are you? Thank you for the observation however it is more psychological than real.
In demo account you have unlimited funds so you do not care for the loss, but in real you feel even the smallest loss.
Please note that both accounts are the same. In case of issues, you can contact us anytime
I used to think iq options was a scam and it was programmed to strip us of our money until I started practicing my strategy on demo account first and trading with the the trend .I am now making consistent profits. thank you for the advice
Hello Dear, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
No I lose today 445 doulars I am sad sow much
Hi now I know why I’m always losing money in trading. I must learn from your tips now. Thanks IQ team for your concern, traders like us that need to learn more and develop such skill. Thanks for your guidance hope to hear from you more.
Hello Dear, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day
Hello, sorry to hear that, did you loose while trading? If yes, then please try the practice account and watch the video tutorials and read more blogs that might help you to understand.
Did you use any tools or strategy?
Tanks you
Hey hi, how are you? You are always welcome 🙂
Funny enough I have severally blow my IQ account both Real and Demo using the Adding to a losing position. Got emotional at some point. No regrets. Lessons learnt.
Op. Thanks for the tips.
Hey hi Abraham! We are sorry to hear that!
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day
I thought these things happen just to me, I start trading I believed I was going to beat the market (fool),
it is a process and I am still learning, I regret the last point, i have had loses because of that.
Let’s start thinking like abraham.
We’re happy you’re staying with us. We will keep working to provide the best user experience.
great
Thanks 🙂
I’m lost
Hey hi, how are you? How can we help you?
It’s great article I hope it help me lucky and stop losing
Hello Dear, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
LOVELY. I HOPE I CAN MAKE IT STICK. I NEED SOME TO PINCH ANYTIME I FORGET THIS ARTICLE. MAYBE I SHOULD EMPLOY SOMEONE FOR THAT
Hey hi, maybe you can add it in your reminders, it might help you 🙂
We wish you all the best.
Thanks a lot you should be adding stuffs like when to trade,what time to trade which currency to trade and the best days to trade in your article it will be very helpful to most traders out there, because this is what professional traders know.
Great platform though
Hey hi Collins, thank you for the feedback, we will definitely work on that 🙂
I am new trader hoping this will replace my day job. I do understand what was expressed in the article. I have learn a lot in the months I start trading with a live account.
Hello Dear, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
Thanks alot this should go a long way in helping me
Hello James, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
Thanks a lot I have learnt something that will help me become a professional trader
Hello Dear, thank you so much for your feedback.
We try to do our best and to provide you with the right information. Let us know if you have something to add. Good day.
Yes I likes treading iQ
Glad to know 🙂 Keep liking us!
thank you. i need to go with the trend flow..
Our best wishes are always with you and you are always welcome 🙂