
Top 10 Causes Of Your Loss In Financial Markets
You have to say to yourself, “If I’m right, how much am I going to make? If I’m wrong, how much am I going to lose?” That’s the risk/reward ratio.”
Peter Lynch
- You’re trading without any knowledge of the financial markets.
- Your risk to reward ratio is inappropriate.
- You don’t care about position sizing.
- Unconsciously, you treat trading as gambling.
- You don’t do any research of your own and rely on the opinion of others.
- You have low self-esteem and because of that, you make multiple mistakes after losing a trade.
- You hate losing money, hence you try to prove yourself right by overtrading.
- You don’t learn from your mistakes and rely on luck.
- You don’t think in terms of probabilities.
- Your present loss overwrites your past profit and in the future, you lose money because of your habit to lose.

