Why do 90% of people lose money when trading contracts?
This question has been asked by too many people. In short, the answer can be summed up in three words: no system.
Let me be direct below; if it hits home, don’t be angry.
1. Occasionally making a fortune but ultimately losing everything: You might have had glorious moments in your screenshots:
You made the right call in a market movement, doubled your account, and earned several thousand U in just a few hours.
But if you look at your overall capital flow, are you losing more?
The reason is simple: you can’t hold onto profitable trades, taking profits too early, while holding onto losing trades stubbornly, reluctant to cut losses as they grow.
The final outcome: making small profits while incurring big losses, and a reversal in the market wipes you out.
2. Emotional trading: the more you lose, the more you want to gamble; check if you exhibit typical behaviors:
Opening a reverse position immediately after being stopped out: “I must win it back today!”
Feverishly adding to losing positions: “I’ll add more; it has to bounce back!”
Closing a position for a small profit immediately: “As long as I’m not losing, I’ll take it!”
What’s the result? The speed of your liquidation is faster than your salary arriving.
3. No trading system, relying purely on gut feelings
“I feel like it’s going up today!” “I feel this wave will rally!” “I feel a reversal is coming!”
Emotional trading and wild guessing of market movements will ultimately lead to two words: certain death. The people who can consistently profit are relying not on feelings, but rather on:
Position management. Entry and exit rules. Risk-to-reward ratio control. A fixed risk management system.
In conclusion:
Making money in contracts doesn’t depend on luck or a single big hit,
but rather on a complete system that is logical and disciplined in execution.
Among the people I’ve trained, those who are willing to listen and execute have a survival rate far exceeding the average within the industry after a year.
How to control positions?
How to set stop losses?
How to determine the pace of opening orders?
I won’t elaborate on these details here.
