Why Traders Lose Money and How to Avoid Being Trapped

There are four types of people in the trading market: investors, speculators, big players, and leeks.The reason why most people become leeks is that they have not figured out their positioning. Investors value the growth of value, speculators value price fluctuations, and big players value leeks' funds. As for stocks, when investors see the big A3000 point, they can boldly buy, and the lower they fall, the more they buy. As long as you believe in China's future, as long as you are willing to hold it for a long time, investment profits depend on development and time. The reason why people who speculate like me can survive in the market rely on the probability advantage of the trading system, so as long as the system is strictly implemented, they can make profits in the long run. Big players make money by relying on information advantages, financial advantages, and talent advantages. So what do leeks depend on? I'm not an institution, but I check the fundamentals and news every day.

They have financial advantages but are crazy about bargain hunting. They originally have a time advantage, but they don’t have the patience of investors and the probability advantage of a trading system. Instead, they rush in and out like speculators, doing everything without an advantage. This is the reason for trading losses.

Let me tell you a way to never get trapped. After entering the market and losing money, many people say they were trapped, and after being trapped for a long time, they fell flat. They were originally speculators, but they turned out to be investors. Some people also covered their positions at low levels, buying more as the market fell, and then they became shareholders.

So why do so few people say they are trapped in the futures and Forex markets?

Because they are a margin market, all those trapped will die quickly. So the secret to not being trapped is to strictly stop losses. I know someone is starting to scold me again, why do the more you stop losses, the more money you lose? Everyone, stop loss allows you to survive, but it does not allow you to win money. Winning money depends on the system, but if you can't survive, no system will be useful. Only by leaving the Novice Village can you go to conquer the stars and the sea.