Why I lose money.

I was having a conversation with someone who was not in finance.  Of course it went the direction that they believed trading to be gambling. After much explanation I finally got my point across.

The reasons I lose on a trade that I can control.

  • I am not aware of a releases or speakers.
  • Not maintaining my Trading Environment Equilibrium.
  • Not following rules.

The reasons I lose on a trade that I cannot control.

  • News happens.
  • It is a new situation.
  • Strategy is not working.

 

Those are really broad and over simplified.  There are multiple levels to each of those bullet points.  The reason why I have a bad day is because I lose money from not doing the things I can control and something I cannot control happens.  Or in some cases I don’t need something I cannot control to happen because I am that bad.

If it was gambling I would not have the ability to improve.  If it was gambling I would not have any control over an outcome.  Don’t get me wrong some people are gamblers and from time to time I do gamble.  When I do gamble I usually lose.

Why do you lose money?

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  • Anonymous

    I lose money because I am in the markets. Can’t have the upside without some downside 🙂

    • If anyone can get back what they are risking you are always going to be ahead of the game. The problem is for some people that is not enough.

2 Responses to Why I lose money.

  1. Anonymous says:

    I lose money because I am in the markets. Can’t have the upside without some downside 🙂

    • Eradke says:

      If anyone can get back what they are risking you are always going to be ahead of the game. The problem is for some people that is not enough.

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