Insufficient Risk / Reward Ratio.
|Use the correct level of risk/reward|
Its important to understand that trading is all about the risk to reward ratio. No trader always makes profitable trades. You will have losers, you must accept that that is part of the process. The key is to make sure that you have at least a 2:1 risk/ reward ratio, ideally more of course. Now some trades may give you a 10:1 return if they run long and profitably enough (cut short your losses and let your winning trades run).
Don’t get flustered if you have a losing run of 3 or 4 trades on the trot, the winning trades should make up for it in the long run - follow your trading plan.
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