Avoiding Losses In Forex Trading

Oct 5, 2017 by

Avoiding Losses In Forex Trading

Actually, in all businesses, included in forex trading, whose name loss or loss is a common thing. Only, of course, we are trying to how this loss we can minimize so that in general our account is still growing with positive growth. So, the disadvantages I mean in the title of the above article are excessive losses. Theoretically, the risk of loss in a business is always there. And in practice, both from personal experience and the experience of other traders, whose position is usually still there, no matter how powerful our trading system, even with a small percentage loss. Want to learn the trading? You may avoid losses, one of them by learning more strategies provided by us.

Do not trade excessively. Pay attention to your margin endurance. A friend of the trader even suggested, in addition, to paying attention to the margin, the quantity of open position also does not have too much. As a rule of thumb, for scalping, traders just do an open position about 10 positions per day. As for day trader approximately 2 times a day. For swing trader even less. Self-confidence, especially believing in own analysis should indeed be. But, excessive self-confidence can backfire. For those of you who are technical, you may just rely on technical analysis and indicators. But, it’s good to remain wary of moments of the news release. Being technical does not mean you do not know what it is and when it’s time Nonfarm Payroll right? Even if you do not like market conditions that sometimes deviate from the technical, at least by knowing when the news release we can keep a position that is still open, or even maybe to know when to avoid the market for a while.

Many trader friends, especially new traders, do not like Stop-Loss because they think this SL “accelerates” losses rather than “limits” losses. Trading without SL is sometimes tempting, because “as if” we never had the wrong position. When we realize a position that is clearly misdirected, do not hesitate to do cut loss. If you feel always hesitate to do cut loss, then return to the previous suggestion: always use stop loss so that the position automatically closed when it reaches certain losses. Never stop learning forex trading, either study, in theory, learn from mistakes and learn from experience. And do not forget, enjoy this learning process.

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