Every average trader on IronTrade knows that getting a stable income is not simple. Many people lose money on financial markets, and that’s true. Everyone can not become rich. It is a privilege that should be earned with hard work and an appropriate attitude towards work. Some people just do not take trading seriously. They view it more as an amusement than hard work. Others don’t have enough desire to study and get new skills. So, how to avoid losing money and manage your losses? In this article, we will try to answer all of these questions.

Don’t think that you are more intelligent than everyone else on the market. That’s the number one reason why people keep losing. When you start to believe that you can overcome the market, you start to lose. It is very unlikely that you can win the market. If it seems like you did, it is probably because of luck rather than your skills. In reality, most traders open trades at the least appropriate time and lose.

There are just a few people who can really outsmart the entire market. So, stay humble and do not go against the crowd here. Instead of it, try to understand crowd psychology and embrace the market.

Emotions

Being emotional is bad for markets. It does not matter whether emotions are positive or negative. They will ruin your trading progress. You need to be calm and cold-headed. That’s they key to success.

Other emotions like vice, greed and fear deprived many traders of their earnings. Therefore, knowing when to stop and following your trading strategy is a skill you should learn.

Trading without risk management

Surely you know about the situations when you bet all your money on a single trade and win. However, it can not happen all the time. Once you make big losses. Unlike those who practice good risk management and, thus, lose a part of their trading capital, you can lose its entirety. Remember, no funds mean no trading. Some conservative investors believe that you can not allocate more than 5% of your trading capital to a single trade. You can try even a bit more. But never put 100% of your money into the trades.

Using robots

You might hear about trading robots that are sold on the Internet. Usually, they offer great discounts and promise high incomes. Apart from the fact that usage of such robots is prohibited on IronTrade, just think – who would sell a robot that can always win in his right mind? It would be better to keep that golden tool private for yourself, isn’t it? Better save the time you could have spent looking for a functional robot online for education and trading on a demo account.

Final

Don’t keep adding to a losing position. What do we mean? If you see that you constantly lose, take a break or at least change your asset (currency pair). When you see that the trend turns against you, the best thing to do is to stop. We know that it might be emotionally difficult, but…that’s why we put a part about emotions in this article. Just reread it again. Good luck!