I was a losing Trader for over two years I used to lose 50 dollars here. a hundred dollars there and if I make sixty dollars the next day, I will lose 200. it just felt like I was in an extremely toxic cycle of losing money and I just couldn't find a way out. Trading was extremely difficult for me I realized that I need to find the reasons leading to my personal mistakes as a Trader or eventually I'll lose all the money and give up out of desperation.

That's why I really started to review my trades and my trading. Behavior instead of looking for profits or wins, I was finally facing the reality and looking at my losses and trying to understand why I was failing so much in trading. That's why I realized there are four deadly things I was doing that made me a consistently losing Trader Understanding these four reasons I was failing Mason really subtle and small to you watching this right now. but they changed everything for me more than seven years ago and helped me get to where I am today.

These four things are extremely simple to implement. You can literally take these tips today and start improving your trades tomorrow. But guess what, they are simple but not easy. So in this video I want to share these four critical reasons: you are failing in trading to help you overcome the struggles of consistently losing money.

So I hope you're ready to face some of these harsh realities because trust me, I'm not sugar coating anything here. Then make sure to smash the like button and now let's get started. Reason number one: Jumping from one strategy to another also known as the shiny Object Syndrome I Realized that the first reason I wasn't successful in trading was because I did not have a single strategy I was focused on mastering I Read from my past journals that I was trying out five or six different strategies every other day. There's a short scalping I was trying to do each morning pre-market and at the market open.

Also, the height of the day breakout through Primark highs. The breakdown shorts the midday view I reclaim and the swing trading I was trying to do all at the same time and the list just goes on and on. So let's address this major Pitfall that almost all new Traders will suffer the dreaded Shiny Object Syndrome I'm sure this mistake of mine probably wasn't that unique. You may have experienced something like this before Am I right? You know the drill.

You feel the excitement of learning a new strategy from a brand new video or a new tick tock short and then suddenly you're jumping ship from your current strategy. It's like chasing after shiny baits in a vast trading ocean. But let me share a powerful truth with you that I personally had to find out. The hard way, your trading success really hinges on how well you understand the price action required, the chart setup, and the execution of one single strategy.

In my very first year of trading, I fell into the Trap of abandoning one strategy simply because I had a red day trading it So I thought wow I lost money trading this setup so that must means this isn't it I must move on right away and find a better and winning strategy out there. You see, there's a few fatal flaws in this way of thinking. Number One I was looking for the perfect strategy that'll make money all the time and that simply false. There's no one strategy that'll offer you 100 win rate all the time in all market conditions.

and more importantly, the second. Point Here, this flawed thinking basically puts the blame or the responsibility on the strategy when in fact the fault is probably the Traders which is mine at the time since I was so new to this strategy I Just learned of course it will take some time for me or you or any Trader out there to test it out and get used to selecting the right stocks to trade as well as executing this particular setup the right way. The irony here is that it is because new Traders never Grant themselves enough time to practice one strategy that the strategy inevitably fails the one or two times that they tried trading it. Remember Traders Every strategy has its own nuances and learning curve.

When you're jumping between strategies with setups, that's gonna prevent you from truly understanding the intricacies. Just imagine trying to learn a new language every week. You barely scratch the surface of any single one. The same applies to learning new strategies.

So how exactly can you overcome this shiny object syndrome? First of all, you should definitely just choose one strategy that resonates you at a time. Ideally, it's one that suits your risk, tolerance and personality. Then it's time to do a deep dive into the strategy. study the entries, exit, and stop areas.

You can also back test them on think Wilson on demand or Dash with a pro. Nowadays I Really recommend traders to practice a brand new strategy in demo accounts or Live account for at least two weeks or a minimum of 10 trades and really critically analyze your performance before deciding whether you want to abandon the setup or keep it. Yes, I Understand. If you look around on my YouTube channel, you probably see me trade five to six different strategies.

Yes, While that's true, I didn't develop all six different strategy all at once, these strategies took time for me to observe and grasp over the last eight years and a lot of times. Mastering one strategy and trading it all the time will eventually lead me to developing the next one. my friend and the trading coach in my community. or Rand used to trade many different setups five years ago one was trading with him, but nowadays this dude trades only one setup and one setup only and he's up three hundred thousand dollars this week trading one ticker with one strategy.

It's almost disgusting. And just because he's focusing on just one strategy, they will be weeks or even months where he takes no day trades because she doesn't see the setup. Remember Traders Trading isn't about finding a magic formula will have as many strategies as possible, it's about mastering just one or a few strategy that works best for you. Reason: Number two: selling winners too soon and holding on to losers for too long.

Now let's talk about a classic mistake that even seasoned Traders can stumble upon the temptation to sell your Winner's prematurely and cradle on to losing trades in the hopes of a miracle. A few years ago, I took a deep dive into my trading journals and looking at all my execution charts I Saved. That's when I realized that a lot of my winners are held for only about 13 minutes max. Well, I see that I hold on to my losing positions for quite a while longer all the way from the first hour of the day to 203.

PM This finding was extremely intriguing to me. so I kept on digging. That's why I realized the top 5 longest Health Losers wiped out 43 percent of my wins on the gear. That's a staggering amount of profits.

Picture this: You're in a poker game and you have a winning hand. Would you fold just before the big payoff? Probably not. Okay I Don't actually know how to play poker, but I Think that's a valid example. and similarly, cutting a trade just as it starts to make gains or when you show any signs of greens isn't exactly strategic.

it's very emotional and on the flip side. Holding on to a losing position with the hopes that it's gonna eventually turn green or bounce can eventually lead to some bigger losses than you had expected. And that's what we call back holding in trading. And if you see my video talking about my most memorable loss on Snapchat then you probably understand how painful back holding was.

I Held on to that loser for like months I Think most. Traders Usually only analyze their win rate and the risk. A word And don't get me wrong, those are definitely very important factors to review, but what they don't review is the average holding time and winning trades versus losing trades. I Didn't need any fancy journaling software to see my problem.

I Saw it all over my trading executions. You can probably see this on your own charts as well. Do this one thing as your homework today. It'll take you two minutes.

Take the last five losing charts of your trades and take your last five winning charts and look at the duration of those holding periods. Compare them side by side. I Think you will be very surprised by what you see and if you care to share, I'll be happy to provide you some feedback in the comment section below. So next, I'm going to provide you a few practical ways to work on this one critical mistake.

But before we go on, if you're enjoying this video so far, please remember to drop a like down below. It really helps out the channel a lot and you'll let me know that you enjoy these educational videos like these. Okay, so here are the actual practical steps you can do to improve your holding time on your winners and reduce the losers. First of all, have a very clear understanding of when your thesis AKA your trading plan no longer makes sense on the stock you're Trading on your own trading platform.

You should draw out a solid level or an area of the price level with a strategy no longer makes sense and mark the line red. For example, if I decide to buy the dip for a reversal at a certain support level, well, the price should not keep breaking down and make lower lows below the red line right? If that's the case, then my thesis is no longer valid then I need to GTFO and vice versa. While you do want to cut your losers short, you should be always trying to maximize your winners. Take the same example from earlier: If the stock does Bounce from support level as you had planned, why sell it for 20 cents profit? If the market was strong and similar stocks are also flying at the same time, then the stock, your trading could potentially bounce to V-wap and perhaps even higher back to the high of the day.

Ever since discovering this reason more than five years ago, I've been actively trying to maximize my holding period for my winners. Sometimes I'll hold on to my winners for hours with the entire trading day or even the next day. Remember failing Traders tend to hold on to winners for Too Short Take profit too early while back, holding on to losers for way too long all the way on the way down. Experienced Traders tend to do the opposite.

So which group do you want to be? So remember to review your trade today and make sure you're not falling for this mistake not a lot of people are talking about. The second way to work on this critical mistake is to make sure you save all of your execution charts on your trades. Whether they are winners who are losers. Yes, I Understand, there's many journaling Services out there for Traders and that's great, but I Do think too much automation or convenience is likely to hinder a Trader's ability to manually review their own trading.

Behavior Reason number three: Not saving and reviewing your past trading executions. That was the third obstacle I Realized that was hindering me from Trading success in my first year of trading. Yes, well, I was writing down my daily profits or losses mostly losses and importing my trades. Those journaling Services I wasn't really saving my charts both the winners and losers in order to actually manually reveal them.

Remember the phrase what gets tracked gets improved One of the reasons new Traders often feel overwhelmed with the 8 to 10 different strategies that they're learning at the same time is that they are not saving and categorizing each and every single trade. I've definitely made that mistake myself as well I Recall after yet another day of bloody losses I Just want to slam down my laptop and forget about those terrible trades I just took Guess what at the time I still had to go to my Dreadful nine to seven job. so the last thing I wanted to do was to save these horrendous trading executions. These screenshot images will just serve as evidence of my shame and stupid losses and all I wanted to do at the time was to forget about them and start my next day fresh.

I'm sure you can relate to this kind of frustration somewhat, but not saving charts religiously is actually the bigger mistake. By screenshotting and categorizing each and every single trade you take, you're creating a definitive visual playbook for you. as a Trader for example, these are all the trencho and long setups I Traded. Their setups and executions are all very similar, and by viewing these short patterns every night, that greatly helped me become faster at identifying them in real time.

And this other pile of trading charts here I call them the Gap up Short strategy I've traded this many times in the last two years and I realized hey, the stocks that Gap up with no news they often sell off aggressively as proven from these charts. And how did I know to risk more and be more aggressive on this one strategy over the other? Well, it's fun reviewing and comparing all my past charts in categories. and at the same time it's because I see my very own mistakes in these charts. I Saved day after day that I learned to avoid trading them any further.

hence avoiding those kind of strategies and big losses. So make sure you save your charts manually and add that to your trading routine at the end of the day. This very simple habit helped me out so much. I recommend screenshotting your entire trade from pre-market or Market open all the way to Market close with very clear arrows defining your entries and exits and categorizing them in really clearly defined strategy folders.

Trust me, this extra five minutes of work at the end of your trading day can really change your performance drastically the next day. Reason number four: over risking and emotional Trading Moving on to the fourth reason I failed miserably as a new Trader was simply because I was risking way too much I Remember trading small Accounts at the time ranging from three thousand to five thousand dollars and I was risking almost five hundred dollars per trade. That's simply too much risk for my account size at a time now. I'm sure I wasn't the only Trader guilty of this.

Raise your hands If you at risked a hundred dollars while trading at one thousand dollars account placing such a disproportionate amount of capital in one single trade, it's going to intensify your emotional response. Fear and greed will start clouding your judgment and that would lead to some impulsive trading decisions such as chasing your entries or even worse, averaging down to a losers I Know I've done that many times before. Risking too much money while trading is like trying to think clearly while riding a roller coaster. You simply can't So what's the solution? Then you can downsize your positions.

This doesn't mean downsizing your dreams or long-term goals as a Trader to own a Lamborghini it just means downsizing your risk exposure in the meantime. nowadays. I Recommend traders to risk no more than three percent of their account. Capital If I was trading at one hundred thousand dollars account, my risk will be up to three thousand dollars per day.

If I was trading at five thousand dollars account, then guess what? The max loss will only be a hundred fifty dollars. And if you are more conservative, I would even go lower to risking only one percent or two percent per day. Obviously, the goal isn't to stay here forever, but to allow yourself a solid foothold of your trading strategy and executions while you're trading small size in order to feel comfortable to size up. Eventually trading with smaller and more comfortable position sizes will allow you to make more objective and rational decisions, especially when timing your entries profit targets and stopping out once.

I Really downsize my risk and trade with only three percent max loss. That allowed me to trade properly and grew my account slowly and steadily instead of getting emotional whip stars and up and downs in my P. L curve. I Just suggested many actionable tips for you to implement today to combat these: Four Deadly Reasons that you may be failing at trading.

Now, if you need a more detailed video explaining how to risk according to your account size, make sure to check out this video next.