Why do I keep losing in trading after winning? 🤔💸
If you are reading this, you have probably found yourself in a situation similar to what I faced: you win several trades, feel like everything is going well, but suddenly the market changes, and you lose not only your profits but also a significant part of your account. It happened to me too, and I want to share with you what I learned and how you can avoid it.
1. Risk management is everything
The biggest problem I had was not managing risk properly. I risked too much on each trade, thinking that the odds were on my side. I learned this the hard way: risking more than 1-2% of your account per trade is a recipe for disaster. Always use a stop loss and make sure not to move it against the market. Also, define clear risk/reward ratios before entering; if it doesn’t make sense, don’t trade.
2. Don’t fall into the trap of overtrading
After a winning streak or a significant loss, it’s easy to fall into overtrading. I made that mistake many times, trading impulsively to "take advantage" of movements or recover losses. What helped me was limiting my trades per day and being more selective. Remember: not trading is also part of trading.
3. Understand the market context
Another mistake I made was not analyzing the market in its overall context. I entered trades without looking at higher time frames or considering important events. Before trading, analyze if the market is ranging, trending, or in a key volatility zone. This helped me avoid entering areas where the odds were not in my favor.
4. Protect your profits
At first, I got excited when the market moved in my favor, but I didn’t secure my profits. Now I use a trailing stop or partially close my positions at key levels. It’s better to take something than to leave everything to the hands of an unexpected pullback.
5. Your mindset is key
The hardest part for me was controlling my emotions. Greed and fear are silent enemies. I practiced techniques to stay calm, such as meditating before trading and focusing on following my plan instead of the profits. If your mind is not calm, the market will throw you off balance even more.
Final reflection
Trading is not about winning quickly; it’s about being consistent in the long run. If you’re going through something similar, take these points and apply them. I made many mistakes, but each one helped me understand what I needed to change.
Remember, the market will always be there, but your capital won’t, unless you protect it. The key is to learn to master your strategy, your risk management, and above all, your mind.
