It is important to understand that weight is entirely a function of input and output. The input is the food you eat and the calories contained therein. The output is your energy output. To lose weight the output needs to be greater than the input. It is that simple. Do not believe any of the diet fads. If you are currently not gaining or losing weight then just burning 300 extra calories per week or eating/drinking 300 calories less per week (2 sodas for example or a small burger) WILL make you lose weight - in this case around 5 pounds of fat per year.
To encourage ketone production, the amount of insulin in your bloodstream must be low. The lower your insulin, the higher your ketone production. And when you have a well-controlled, sufficiently large amount of ketones in your blood, it’s basically proof that your insulin is very low – and therefore, that you’re enjoying the maximum effect of your low-carbohydrate diet. That’s what’s called optimal ketosis.
Note: Because you'll be excluding some major food groups on the keto diet (grains, many fruits) you should definitely think about taking a multivitamin—especially one that contains folic acid, which helps your body make new cells and is often found in enriched breads, cereals, and other grain products, says Julie Upton, R.D., cofounder of nutrition website Appetite for Health.
In so far as insulin promotes de novo lipogenesis and suppresses lipolysis in adipocytes it DOES help keep the fat inside. But in Hyperinsulinemia / Insulin Resistance with Impaired Glucose Tolerance lipolysis may not be sufficiently reduced and fatty acids and glycerin can be spilled at the same time that Triglycerides are being formed & stored. In the liver the glycerin gets converted to glucose producing hyperglycemia.
Obviously, it’s still possible to lose weight on any diet – just eat fewer calories than you burn, right? The problem with this simplistic advice is that it ignores the elephant in the room: hunger. Most people don’t like to “just eat less”, as it may result in having to go hungry forever. Sooner or later, a normal person will likely give up and eat, hence the prevalence of “yo-yo dieting”. While it should be possible to lose weight on any diet, some appear to make it easier and some to make it much harder.