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samuel23

Managing Your Losses

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One of the cardinal rules of Forex trading is to keep your losses small. With small Forex trading losses, you can outlast those times the market moves against you, and be well positioned for when the trend turns around. The proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position. The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading float, a string of losses won`t stop you from trading. Unlike the 95% of Forex traders out there who lose money because they haven`t applied good money management rules to their Forex trading system, you will be far down the road to success with this money management rule.

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samuel23 I am agree with you. Some traders lose money due to not using good money management system. There are number of rules and money management tips to avoid lose. We should follow them.

 

Thanks for liking this thread. This is very important fro Trader. We should never be greedy in Forex, we should simply wait for our time and we will benefit. Money management is vital in Forex Trading as we should always know how to control our money whether in a losing or winning Trade. We should always follow them ;)

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plan your trade...trade your plan...

all traders have different market views, thought processes, risk tolerance levels, investment size and market experience...

 

Nice quote. We should agree that each traders have different market views as very few of us trade the same way. However, we have to learn Forex quite similarly as we have do have some knowledge in common. :haha:

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Nice post Samuel.

One more advice to traders. Don't forget if you have a strategy stick to it! If you are loosing on your trades take a break, re-evaluate and come back with a plan, try to learn from your mistakes. And most important don't forget to follow money management rules- don't risk a high percentage of your equity and use low leverage. :doh:

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Do not over trade. Never trade more than 25% of your equity. If you found that your analysis is wrong or the market has turned cut your losses fast and switch, don't wait till your stop loss order to be executed. Never add to a lossing position; cut your losses fast.

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Setting proper stop losses are important to ensure that your losses are minimized. For traders that don’t want to sit in front of their computer every minute they have positions opened, stop losses are your best friend.

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what I did some time ago was never letting my margin to be more than 30% level.....by the time is was more, I just cutted the size of one specific trade and look for other opportunities....it was a nice way to keep you fresh and we all know that there is nothing better than a fresh start

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what I did some time ago was never letting my margin to be more than 30% level.....by the time is was more, I just cutted the size of one specific trade and look for other opportunities....it was a nice way to keep you fresh and we all know that there is nothing better than a fresh start

 

Experiments with strategy are always a good thing, especially if you can allow for yourself to lose a couple of bucks on micro or nano lot. You gonna faster come to what are you striving for in trading.

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I see that's an old thread however I am writing as managing the risks associated with investments is necessary and for that the most important thing is to invest to the extent that we can afford to loose. We can also diversify our portfolio in order to reduce the risk factor.

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    • Date : 20th April 2018.

      MACRO EVENTS & NEWS OF 20th April 2018.



      FX News Today

      European Outlook: SNB’s Jordan sees no need for change in policy. The Swiss central bank President told Bloomberg last night that “there is no need to do anything regarding monetary policy at this morning”. Speaking after the CHF broke through the 1.20 per euro mark for the first time since the SNB gave up that ceiling, Jordan said the franc’s drop goes in the “right direction” but added that the currency is still considered a haven and the situation “fragile” and prone to change. So the SNB “remains very prudent” and “convinced that the current monetary policy is still necessary”. Further confirmation that the SNB is firmly on hold while watching also the ECB’s move very closely. If and when the ECB finally starts to reign in its support it will also increase the room for the SNB to manoeuvre. Bloomberg polls predict the first rate hike from the SNB in the last quarter of 2019.

      US Updates: Revealed a Philly Fed rise to 23.2 in April and a 1k initial claims downtick to a slightly-elevated 232k in the BLS survey week of April. The ISM-adjusted Philly Fed beat estimates with only a small April drop to 59.7 from a 45-year high of 61.8 in March, thus outperforming Monday’s Empire State where we saw an April drop to 15.8 from 22.5 with an ISM-adjusted decline to 56.2 from 57.3. For claims, the trend remains tight despite modestly higher readings over the last three weeks, as the moving Easter holiday and school breaks often distort April claims. We still expect a 210k April nonfarm payroll rise. The weekly Bloomberg consumer comfort index hit a third consecutive new cycle-high in mid-April of 58.1, and leading indicators rose 0.3% in March to leave a 22-month stretch without a decline, and a rise in the 6-month annualized reading to a lofty 8.8%

      Charts of the Day



      Main Macro Events Today
        CAD Retail sales – Expectations are for an improvement of 0.5% in February after the 0.3% gain in January. The ex-autos sales aggregate is expected at +0.3% after the 0.9% gain in January. The CPI’s gasoline price index edged 0.7% lower in February after jumping 3.2% in January following a 3.3% drop in December. % m/m inline with expectations CAD CPI – Expect March CPI, due Friday, to expand 0.4% (m/m) after the 0.6% surge in February. The annual growth rate is projected at 2.5% in March, up from the 2.2% y/y pace seen in February that was the fasted rate of CPI growth since the 2.4% pace in October of 2014. The BoC took the recent CPI climb in stride, viewing it as in line with their outlook. The temporary factors that had been restraining inflation, the Bank explained, “have largely dissipated, as expected.” The close to 2% core inflation rates are consistent with an “economy operating with little slack.” Inflation in 2018 is expected to be modestly higher than they expected in January, but due to the transitory impact of higher gas prices and recent minimum wage increases. See the preview. IMF Speeches – Saunders (BOE) Weidmann (Buba) Williams (FOMC) Support & Resistance Levels



      Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

      Please note that times displayed based on local time zone and are from time of writing this report.

      Click HERE to access the full HotForex Economic calendar.

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      Click HERE to READ more Market news. 


      Stuart Cowell
      Senior Market Analyst
      HotForex


      Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
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