If you see traders on social media who never lose in trading, away from them. They are not honest with him. Even the greatest traders usually only have a 60-70% victory. The most powerful ones only have an average of 80% wins. Many of the follower trends have a winning average of below 50% and can still make a profit because they believe their defeat is small and his victory is overwhelming.
Losing a row is unlikely to be avoided for the real trader. The best financial managers also sometimes experience a 10-20% decrease in capital on their success. This is not a failure, this is normal. Although financial investors such as Warren Buffet also declined over the years. Fortunately, Mr. Buffet does not have twitter so it will not be in the mockery when buying stocks that continue to lose money for a month.
- Daily traders lose money when the market suddenly moves away from their positions.
- Investment purchases can lose value after decades, sort of 2000-2010, even though sold to the public as a paradise of investment. When purchased and stored, in 2009, the value dropped 50%, the amount of which is very much and unpleasant. I know of buying and saving investors who suffered losses ranging from $ 25,000- $ 40,000 in 401k and their IRAs in a year. Believe me, it hurts.
- Trend followers lose their money when the market reverses and when it suddenly turns, but gets a lot of money as the trend gets stronger.
- Most swing traders lose money during trends and breakouts on trading
Losing trades is part of the business for the true trader. How we manage defeat and loss is what keeps us in this business. Most new traders stop online trading because they do not understand that part of trading is losing. In trading, the loser can be the winner, and the losers will give up and go to another field.