As traders, all of us hope that each new position we take on becomes a winner. Realistically, we all know that some trades will turn out to be losers. In fact, one could argue that there are really three things that are certain in life; death, taxes and losing trades!
There are way too many reasons to list why some trades turn into losses but a few of the most common include:
-Improper analysis
-Unexpected events
-Missed earnings
-Sudden downgrades
-Failure to take profits