Why are all my trades losing?
In this article, we will examine why some traders lose most of their trades and fail to make progress in the forex and financial markets. Many traders, despite learning technical and fundamental analysis and knowing many strategies, cannot be profitable in Forex trading and unfortunately most of their trades fail and they lose their money. Why are most of my trades losing? If your Stop Losses are constantly activated in your trades and you lose, it is only for 2 reasons
You set very high reward targets for your positions
One of the reasons many of your trades end in losses is that you set very large profit targets on your positions and wait for the market to reach your TPs and activate them. For example, you open a buy position with a risk/reward ratio of 1 to 4 and set 4 profit targets, then the price rises and reaches your second TP, but after the price reaches your second TP it starts to make bearish candlesticks and goes down. However, you keep your position open in the hope that the price will reach your TP 4, but the price starts to fall and reaches your Stop Loss and activates it.
Photo by TradingView
In the above example, if we closed the position after the price reached the second TP, we would exit the trade with a profit. To solve this problem, we recommend that you use risk to reward 1 to 2 so that you can slowly grow your account.
You set very small stop-losses on your trades
One of the most common reasons amateur traders fail is that they set very small stop-losses and the first shadow or pin bar activates their stop-losses.
Photo by TradingView
Look at the image above, We have identified a support area on the chart and we have opened our buy position in this area with a very small stop loss. As you can see, after opening our position, the market moves in the direction of our analysis, but suddenly with a shadow, it activates our stop loss. In the example above, if we had set our stop loss a little lower, our trade would have been successful and we would have made a good profit.
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