The formula for losing trading

In short

Cut profits

Close the trade the moment it's green.

Keep losses

No stop, hoping price will turn.

Average down

Add to the losing position again and again.

The fix

Do the opposite: let profits run, cap losses, trade a system.

1. Cut your profits short. Close the trade the moment it goes green. Don't wait for a big move.
2. Don't close your losses. Don't set a stop. Don't cut a small loss — price will surely turn. Six months later it's still "about to turn".
3. Average down. Price went against you? Add as often as possible, or you'll miss a good price.
4. Trade blind. You don't need a system; the market is chaos. Add more indicators — that'll definitely help.
5. Forget about risk. Don't calculate position size. 150× leverage? Sure. No stop means no loss.

Every add against the trend increases the position and the loss — until liquidation. Illustrative data.

That's the perfect formula for losing, and many people follow it. Do the exact opposite and you'll see your first results of profitable trading.

A few more traps

Arguing with the market. Trying to catch the turn, conviction in one direction, sitting in losses.
Forecasting. A trader doesn't have to guess. The job is to find the entry, control risk and adapt to the market.
No system. Jumping from one strategy to another brings no results — only confusion.
Inflated expectations. Wanting big money fast pushes you into big risk.

Stop before entry

Every trade opens with a stop.

Size by formula

(risk / stop) × account.

Never average a loser

Only add to a winning position on a new signal.

One system

Clear entry and exit rules, tested on history.

A journal

Record your trades and find where you break your rules.

Averaging down a losing position with leverage is the most common road to liquidation. One such trade can erase months of careful work.

What if price does turn around?

Sometimes it does. But one trade that doesn't turn wipes out ten lucky averages.

Isn't taking profit good?

Closing everything at once out of fear is the problem. Partial profits and a breakeven stop solve it.

How many indicators do I need?

One or two for the market phase plus levels. More means more contradictions.