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So trying to get in to fishing, and enjoying it for what it's worth.
I hit 10 and went to Candlekeep Quay in Lower La Noscea and was doing fine for a bit. Yet now (at level 13), no matter what water I hit in that area (Ocean or Freshwater) I am 100% losing bait.
Is there some hidden number for a zone that forces you to go to another for a bit?
Are you catching the fish and losing bait or losing the fish and the bait?
Also, have you checked to see if the zone level matches your level (in the fishing log)? The fish might be too strong.
The only time I've seen it say "You lose your Bait..." is when something bites and I don't hit [Hook] fast enough.
(you might check your toolbar to make sure you didn't accidentally move the hook button or if you are using a macro, check to make sure there's not a typo)
If you're actually getting a bite, hitting [Hook], and then after a few seconds of trying to reel it in your character just lets the fish go, that means you don't have high enough Gathering to catch whatever was biting.
When this happens, you're probably catching something above your level, so you should try a different bait or move to a lower level area.
There IS a hidden number of casts where it will force you to move, but it will tell you "The fish are onto you..." and when that happens you only need to move about 10 steps and you'll be able to cast again.
Make sure you are fishing in an area that is your level. If you fish in an area that is too high you literally cannot catch fish but your bait will be spent. Check to make sure you have your system messages displaying including error messages. The game tells you what is going on. It will say whether or not your level is too low by hinting that and it will tell you if the fish do not like your bait. Nearby Aetheryte camp's NPC vendors have fishing supplies according to the level of the camp. Also regularly check with the fishing guild in Limsa Lominsa while you are on your fishing class to make sure you are doing the leveling quests as you unlock them. Check your fishing log and appropriate level fishing levees also.
Item descriptions for the fishing bait and rods also give hints for their appropriate use like fresh water or sea bait. Check your Active Help messages archive under fishing too. It will show you a list of all of the help messages that you have unlocked when you first tried various actions in game like how to fish and use bait correctly.
Make sure your gear is up to date/repaired. If you're level 10 and fishing at Candlekeep Quay you really shouldn't be failing to land any catches unless you're not reacting fast enough to reel them in.
Otherwise, bait is consumed every catch whether you land the fish or not. Lures are not consumed unless you hook a fish that is greatly above your skill level and will have the chance of breaking your line and having you lose the lure in the process.