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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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    • I traded alot today. 9 trades, 8 losers and BEs, 1 runner that paid for them all. Gotta keep swinging! totaled 240 bps before commission. The first winner on W, I did not count - it was a mistake that led to profit. I felt like a machine, kept pulling the trigger, watch the 1min chart, see it doesn't go anywhere, take my small loss... over and over... then one takes off... Let it run... the whole time I was thinking I hope that the one winner will pay for all the losers. I was tempted to close out the winner early. I had no idea that the payoff distribution for this strategy would be so extreme - 8 tiny losses before hitting a big win. Pays to keep the losses tiny and keep swinging. 
    • Date : 22nd February 2019.

      MACRO EVENTS & NEWS OF 22nd February 2019.



      FX News Today Both Topix and Nikkei, declined during the Asian session, with -0.25% and -0.18% respectively. Overall, stock markets in Asia struggled through most of the session as subdued inflation data rekindled concerns about a lack of demand and flagging growth and after Wall Street closed in the red. News that US President Trump will meet with China’s top trade negotiator today in Washington seems to have helped Chinese markets to stage a late rally and CSI 300 and Shanghai Comp are up 1.76% and 1.51% respectively and the Hang Seng also managed to claw back losses and is up 0.11%. US stock futures are posting marginal gains and the April WTI future is trading at just over USD 57 per barrel. USDCAD rallied over 1.32 to 1.3225, as Oil inventories rose, with the US at record production levels. Oil price is now back around the $57 mark. Japanese CPI data same as forecasts, pushing the Yen higher. Charts of the Day


      Main Macro Events Today EU CPI Inflation – Core inflation is expected to be confirmed at 1.1% y/y while the overall inflation rate is expected to have stood at 1.4% in January. Canadian Retail Sales – Retail Sales are expected to have declined by 0.3% m/m in December, an improvement from the 0.6% declined observed in November. Mario Draghi Speech – The ECB President is due to speak to the University of Bologna where he will accept an honourary degree. Support and Resistance
       
      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.

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      Click HERE to READ more Market news.

      Dr Nektarios Michail
      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.
    • Actions for the 21st. 
    • Today had 3 trades, + 73 bps. The 2nd red dot on ALB was an error, somehow 1 share got executed at the lower price. I started new batch of trades today. The tweak was the exit is now based on trailing exit instead of manually calling it. I found it to be extremely uncomfortable as I sat through each retracement on DPZ. To see profit retrace back to zero or negative is associated with much pain. It feels as if it's a permanent loss. My goal is to execute my trading plan and not trade based on my emotions. I am very proud of the 2nd exit on DPZ for 170bps. I will do my best to continue this work. I do notice I may be giving back a bit too much on my losers, I will not change anything until the next batch of trades.   
    • I forgot to post yesterday. I was down 72 bps.  
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