Why Do everyone make loss in Trading

in hive-175254 •  4 years ago 

Just to know what do you think of trading?If you think it's full of loss-making then you are in the wrong place.
People often focus on how much percentage to make or how could they double their capital this is what trading means to 95 % of people. Everryone think you have to make fancy chart like this in order to trade

image.png

No its no that Trading is a game full of probability ,risk management and mindset. 80% is mindset and 20% is technical analysis
Now you might be thinking what shit is this guy talking just think when you are sprinting 100 m do you require different tools like food, energy drinks, calorie counter etc no you just concentrate to keep yourself light and free so that you can give your max efforts.same is with trading you have to make money in a day or so.

Secondly people s focus on returns and not Risk Management you should always focus on Risk to Reward that is the main motto behind this article that is how much you are ready to risk in order to get that return (you should always trade those positions where Risk to Reward is more than 1:2) that is if Risk to Reward is 1:2 means you are ready to risk 1Rs in order to gain 2 Rs. The better you manage your risk the lesser you make losses.

Thirdly Always put Stop losses on basis of Risk to Reward I have given a example below(RTR 1:2) this way I curtail my losses

Capture2.PNG

Lastly, you must not have greed you must always focus on Risk Management and stop losses if you follow this itself you get a head start . Now if you see the chance of winning a trade is 50% when you combine these techniques the chances of winning are about 60-70% see how just by learning this I prevent my capital from drawdown as well as have a high probability to win
So to revise
Risk Management is the highest priority
Always keep Stop Loss(Successful Traders aways keep this)
Never use too many indicators
Be Positive
Happy Trading Do give an upvote and comment if you have any doubt

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Hello @akshay07

Thank you for posting within our community.

Please spare few minutes and read how project.hope is organized and learn about our economy.

That would help you understand more our goals and how are we trying to achieve them. Hopefully you will join our community and become strong part of it :)

Do you use telegram or discord? If you do then join our server and give me a shout. I would gladly share with you goals of our community and introduce to others from our team.

Consider joining our discord server: https://discord.gg/uWMJTaW

Remember: No to content plagiarism!

Regards, @juanmolina
@project.hope co-founder