Hey hey: what's up my friend, so in today's episode right i want to share with you five five likely reasons why you're losing money in trading. Okay, reason number one you're not doing the work. I know this might sound funny right. You might be thinking no rainer.

I am doing the work right now i go to trading forum. I check out what other traders are talking about. I learned their strategies. You know i put on a few trades and stuff like that.

Come on, let's be honest, that's not doing the work. That is the fun part. Really right. It's like you know people who wants to build muscles right.

They thought that you know doing the work is doing a few bicep curls, a few bench press, that's doing the work. Well, that is for for beginners, but if you are a pro bodybuilder, the work is actually your diet. Your diet is like 70 80 right of everything right, your nutrition and stuff. Like that, you know, it's like you know forcing yourself to eat more food, so you can build more muscle, you eat, for the sake of building muscle and not for the taste and stuff like that, the grind right, that's how people you know bodybuilders they build muscles.

They do the work and it's the same for trading, doing the work doesn't until you know, going to forum, checking out analysis of other traders, opinions and stuff like that. That's the fun part right, just like you know doing bicep curls, that's the fun part. The work here in trading right entails verifying right whether the concept, the ideas right that you have come across, whether it works or not, that involves you, know forward testing back testing, developing a trading plan. You know journaling your trades.

This is the work. This is the grunt work like like just like how we know bodybuilders have to you, know slow down those. You know chicken breasts that are being steamed, for the sake of you know competing at competition same for trading. Your work here entails, you know, journaling your trades back, testing forward, testing et cetera.

This is the work. This is the grunt work and this is what separates winning traders from losers. Okay, if, if after hearing this, you feel that ah right now he's talking bs that really you know all the best of luck to you, you can continue surfing hopping from forum checking out new strategies and, and maybe one day right, you might understand where i'm coming From or maybe you know, you might find success in one other way. That is different from what i experience.

Okay number two. You get swayed by news and opinions. So here's the thing when you are when you don't do the work right when you don't have any proven trading strategy where you don't have something concrete right. Your beliefs are very soft.

It's like jelly, you know it wobbles. So every time someone has an opinion or sometimes there's a news release right. Your opinion just changed like that, because you don't have a firm belief, a foundation to start with. You see where i'm coming from so, for example, maybe let's say you are long goal, maybe because you think that hey that someone on the forum said you know, gold is bullish.

He backed up with a number of fundamental statements and you buy into gold. Next thing you know, you watch cnbc and they say you know: gold is uh, it's uh, the price is too high, maybe you're very famous. You know. Macro investors say, you know, goal is you know overbought and it's about to decline over the next two three months and you get scared and sell off your position and go, and this is how you sway from one position to the next, getting straight by opinion.

Getting sued by news and that's because again it's due to number one right: you don't do the work without doing the work right. You will easily get swayed by news and opinions. Your trading will all be all over the place. Your actions are inconsis inconsistent and what happens you get? Inconsistent results? Okay, so that's number two right getting swayed by opinions and news number three: you are trading without an age in the market, so this is really a message right to those traders who think that to be a profitable trader, it's all about your risk to reward ratio.

Oh ray rainer, i aim for a minimum of a one to two risk reward ratio on each trade. Oh rainer, all i need is proper risk management. Oh rainer, all you need is the right training. Psychology psychology is like 80 in trading.

Well, i'm here to tell you right: you can have the best psychology. You can have the best risk management. You can have the most optimized risk reward ratio. They can take off right, risking one dollar to make 20 blah blah blah.

But if you don't have an age in the market, if your trading strategy right doesn't have an age in the markets, then guess what all of this is useless right. Very simple example is a coin toss right. Let's say you have a coin in your hand. Every time it comes up hit, you win two dollars.

Every time it comes up till you lose one dollar. Clearly right that coin, toss right is going to work in your favor, because the coin doors gives you an edge over your opponent. If you flip it the other way around every time the coin toss comes up hit, you lose two dollars every time it comes up till you win the dollar. You can see that no matter what right, if you have, that kind of odds in the coin toss the risk management the psychology all this is not going to help okay, so you must have an age.

It's the same for trading. You must have an age in the market. It's your trading strategy right, got to statistically prove to you that it makes money in the markets. That's important and number four wrong expectations in trading so many times people get involved in trading the financial blankets because they want to generate another source of income, a passive software source of income.

I want to make an extra 10 dollars per day. I want to make you know: 500 pips every week, blah blah blah. Now here's the thing right. If you have this kind of expectations, where the market is like your atm, where you're supposed to make like 50 bucks every single day, then what happens is that when your expectations are not met, then what happens? Well, you find that you will be doing funny actions right to meet those wrong expectations of you.

So, for example, let's say you have an expectations of making, i don't know 20 pips a day. Okay, let's say you got 20 pips on monday and tuesday, so in total you got 40 pips, that's nice, but on wednesday somehow you know the market just doesn't seem to be acting in your favor you're down - currently, let's say 20 pips, but instead of taking a Loss right, you tell yourself no, you know i got ta force out this 40 pips today wednesday. So what do you do? You average into your losses? You widen your stop loss, hope fully hoping that the market would reverse back in your favor and you can earn that 20 pips for the day end up. Instead of losing 20 pips right as originally planned, you lose 100 pips on that day, so that 100 pips loss right is not enough right to even cover right the profits that you have made on the earlier two days.

So can you see you end up? Actually, you know negative right for the week, so can you see how the wrong expectations that you have right of one thing of needing to make money every single day actually cause you to take actions, make decisions right that is actually detrimental to your trading results. So the key point i want to share here is actually to understand right to have the right expectations from the market, or rather should i put it right, don't expect anything from the markets, because the market will reward you right when it wants to the only thing That you can do the only thing that you can control is your losses. You can't control how much the market wants to give you. It will give you where he wants to give you, and you can't say you know i want to make a profit every day.

Oh, i want to make 500 pips a week. No, the market doesn't care. What you want it gives you when he wants to. The only thing that you can do is to control your downside.

Okay, so that's number four right, most traders. They have the wrong expectations about trading and, lastly, number five. This is very important. Many traders right - or rather or rather maybe it's the way we are bringing product right.

We don't have critical thinking. We don't ask why enough we just take whatever we get right at face value, and that could be maybe because of the education system that we are being brought up with right. You know the education system, since we are young right, there's always two answers. Is that yes or no okay? The answers that you know you do an exam there's only like so called one correct model answer.

Any other answers is wrong and that way of thinking right or that way of approach right of bringing you up right cause you to stop. You know thinking deeper right because after all, there's only one correct answer right. Why bother you know finding uh an alternative since there's only one correct answer, so you take whatever that's given to you at face value and, however, in the real world, it's not quite like that in the real world there is yes, there is no. There is.

Maybe there is 60 years 40 notice, gray areas, and it's the same for trading right you. There is no like best strategy. There is no best parameters or whatsoever. You have to develop critical thinking, skills and in one way to do.

But it's very simple, just ask the question: why right this is something like you know, for example, i have kids now and they keep asking. Why papa? Why? Why why it gets irritating right, but but you can see that you know when you are young when you are, you know kind of like naive. You ask a lot of why and you get a lot of answers. Answers that you might not have thought of before, and the point i'm trying to bring over here is that it's the same for trading.

You don't want to take anything, that's being shared on youtube. On forum, or even what i'm saying here at face value, you want to ask why you want to develop critical thinking, skill to think on your own. So you can make the right decision and not just make decision based on what somebody says. Just because reina says that, oh what that means is right, i'll just follow him right because he's the he's, the the guru.

No, no, no, you have to develop your own critical thinking, skill, for example. Let's say i share with you a trading strategy that buys the 200-day breakout. You don't want to think that oh reyna says the 200-day breakout is the best strategy. I should trade it.

No, you wan na ask yourself why. Why did rainer say to trade? The 200-day breakout. Why and then maybe i said, let's say i have a 380r trailing stop-loss. The next question you ask yourself is: why did rayna go with the tree? Atr trailing stop loss because once you have that why in place, then you go about looking for answers to answer the.

Why? So that's where again right work is involved right. You got to do your own research, your own testing and stuff, like that, and it all starts with. Why don't take anything at face value right? This is so important, especially when you are trading with your own real money. You don't want to just take any tom, dick harry mary, jane opinion right and risk real money with it.

Okay, so as a quick recap right, these are the five likely reasons why most traders fail number one you're not doing the work. Number two you get sued by news and opinions number three: you don't have an age in the markets. Number four! You have the wrong expectations about trading at number. Five, you don't have the critical thinking, skill and the best part is.

The good news is this: is all this right can be fixed? It can be fixed, it's not permanent, okay, so once you know where which areas you're lacking with right, take steps. Take the uh, necessary work right and walk down the or and stop making those mistakes and walk down. The right path sounds good with that said. I've come to the end of today's episode and i will talk to you soon.

You.