Translate the below html to English, keep format html, the result is not in markdown code and not break line, convert standard decode before translate: FXで負けないために Converted to English: To avoid losing in FX

In FX, it is often said that “80% lose and only 20% win.” I would like to delve into why people fail in FX.

Here, four common mistakes are listed. Keep these in mind to avoid failure and join the 20% of winners.

1. Trading without clear basis, relying on intuition

You see the chart and immediately think it’s a chance and enter right away. If you trade based on vague intuition, it becomes nothing but gambling.

To win,you should perform proper technical analysis and forecast the market before trading. Relying on luck to determine win or loss will not lead to consistent victories.
Analyze the chart to avoid regrets after trading and wait for entry opportunities. If there are no opportunities, it is also important to skip the trade.

2. Being swayed by emotions

Next is being driven by emotions. Once you become emotional, losses are likely inevitable.

Especially when the market moves against you, you tend to try to recover losses, get heated, lose composure, and trade without any solid basis or proper risk management. Being swayed by emotions during trading is utterly detrimental.
Trading driven by emotions can lead to irrecoverable losses.It is important to fully understand the negative impact of emotions on trading and firmly establish strategies and methods within yourself.

3. Not cutting losses or unable to cut losses

Even when positions move against you, those who do not cut losses cling to baseless hope that the rate will eventually return to normal.
But when will it return? No one knows.

This also relates to emotional factors: “expectation” and “hope” influence decisions. When the market doesn’t move as you expect or moves in the opposite direction creating unrealized losses, can you cut losses quickly without hesitation? If your prediction is wrong, you should cut losses to minimize losses..

If you cannot cut losses, you risk significantly reducing your assets and affecting future trades.If you can minimize losses, you can reinvest and create opportunities to grow your assets.

4. Averaging down (nampin)

Nampin refers to buying more after the price has fallen, lowering the average purchase price.

Continuing nampin in a downward trend reduces the average purchase price, but the unrealized losses grow and the risk becomes very high.

Therefore, beginners should not actively employ nay pin.

Summary

Rather than focusing on the profit of a single trade, it is very important to achieve overall profits.
“Minimize losses and maximize gains”is the fundamental rule.

※The content of this article reflects the writer’s views and is not intended to provide definitive investment judgments; it is for information only and does not solicit any actual buying or selling of any type of product.