I.32. Why losses occur more often?

Working in the market, a trader acts by trial and testing the market, having grounds to enter into a transaction under certain circumstances. It is not known in advance how the market will behave after the start of the transaction, and often, instead of waiting for a further reversal of events, the trader decides to close the transaction to fix the loss. In general, a loss is a reduction in your account only after the transaction is closed. Until the transaction is closed, the outcome of the transaction is not determined in advance and the minus on your account is not a loss.

Thus, losses occur more often due to the volatility of the market (constant movement up and down) and the reaction of the trader to it. The wider the price fluctuations, the more often traders will close deals and, accordingly, losses.

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