I Keep Losing Money Trading - What Should I Do? A Tracking-Based Solution

If you're thinking "I keep losing money trading" and don't know what to do, you're not alone. Most traders struggle, but there's a systematic approach to understanding and fixing the problem.

First: You're Not Alone

Studies suggest 70-90% of retail traders lose money. But that doesn't mean you can't be profitable. The difference between consistent losers and profitable traders often comes down to one thing: self-awareness through tracking.

Why Are You Losing?

Before fixing the problem, you need to diagnose it. Common reasons include:

Trading Issues

• No clear strategy or edge
• Poor risk management
• Wrong position sizing
• Bad entry/exit timing

Psychological Issues

• Revenge trading after losses
• Overtrading
• Fear of missing out (FOMO)
• Cutting winners short, letting losers run

Process Issues

• No trading plan
• Not tracking results
• No review or improvement process
• Learning without practicing

The Tracking Solution

Step 1: Start Tracking Everything

You can't fix what you don't measure. For every trade, log:

• Entry price and exit price
• Position size
• Profit or loss
• Why you entered
• How you felt
• Whether it followed your plan

Step 2: Build a Dataset

Track for at least 2-4 weeks without changing anything. You need enough data to see patterns.

Step 3: Analyze Your Data

Look for answers to:

• What's my actual win rate?
• What's my average win vs average loss?
• When do I perform best? Worst?
• Which setups work? Which don't?
• Do I follow my plan?

Step 4: Identify the Real Problem

Your data will reveal the truth:

If win rate is low but average win > average loss: Your entries might be the problem. Work on better setups.

If average loss >> average win: Risk management is the issue. Stop cutting winners and holding losers.

If you're not following your plan: Discipline is the problem. Focus on process, not outcomes.

If emotional trades have worst results: Psychology is the issue. Develop rules to manage emotions.

Common Patterns in Losing Traders

Pattern 1: Revenge Trading

You track and find:

• Worst trades happen right after losses
• Position sizes increase after losing
• More trades taken when down

Solution: Set cooling-off rules. After a loss, wait X minutes before the next trade.

Pattern 2: Overtrading

You track and find:

• More trades = worse results
• Quality degrades after trade 3-4
• Fees eating into profits

Solution: Set maximum daily trades. Quality over quantity.

Pattern 3: No Edge

You track and find:

• Win rate around 50%
• Average win ≈ average loss
• Random results with no pattern

Solution: Stop trading live. Study, backtest, find an actual edge first.

Pattern 4: Poor Risk Management

You track and find:

• Big losses wipe out many small wins
• No consistent stop-loss usage
• Position sizes all over the place

Solution: Fixed risk per trade (1-2%). Always use stops.

Building a Recovery Plan

Week 1-2: Data Collection

• Track every trade
• No judgment, just record
• Be completely honest

Week 3: Analysis

• Review all trades
• Calculate key metrics
• Identify patterns

Week 4: Diagnosis

• What's the primary issue?
• What's the secondary issue?
• What can you control?

Ongoing: Implementation

• Create rules addressing your issues
• Continue tracking
• Measure improvement

Specific Actions Based on Your Tracking

If Emotional Trading Is the Problem:

• Add "emotional state" to your tracking
• Set rules: No trading when angry/frustrated
• Take breaks after losses

If Risk Management Is the Problem:

• Never risk more than 1-2% per trade
• Always have a stop-loss before entering
• Track your risk/reward on every trade

If Strategy Is the Problem:

• Stop live trading temporarily
• Backtest or paper trade
• Only trade setups with positive expectancy

If Discipline Is the Problem:

• Log whether each trade followed your plan
• Calculate separate stats for plan vs impulse trades
• Make the plan simpler to follow

The Mindset Shift

From Hoping to Knowing

Stop hoping you'll be profitable. Use data to know:

• What actually works for you
• What consistently fails
• Whether you're improving

From Gambling to Business

Treat trading like a business:

• Track everything
• Analyze performance
• Cut what doesn't work
• Scale what does

From Emotional to Systematic

Remove emotion from decisions:

• Rules-based entries and exits
• Predetermined risk levels
• Data-driven adjustments

When to Take a Break

Your tracking might reveal you need to stop trading for now if:

• Losses are causing financial stress
• You can't follow any rules
• No strategy shows positive results
• Trading is affecting your mental health

Taking a break isn't failure—it's smart risk management for your life.

Conclusion

If you keep losing money trading, the answer is almost always: start tracking. Without data, you're guessing. With data, you can diagnose the real problem and fix it systematically.

Your trading journal is your best teacher. Start today—log every trade, analyze weekly, and let the data show you exactly what to change.

The traders who succeed aren't the ones who never lose. They're the ones who learn why they lose and fix it.