How to Deal With Forex Trade Losses?

[Norm O'Neill]

The toughest thing for any forex trader is to deal with the financial losses. OctaFx broker strongly feels that the losses are not only painful but also a great distress to deal with.  The losses are actually the catalysts that provoke the traders to make even more grave mistakes that lead to greater losses.

 

Thus it becomes very much necessary to understand the logic of the occurrence of losses. A trader should prudently follow a strategy to cope up with the losses that occur and keep them under control.

 

OctaFx broker throws light on some of the facts related to dealing with the losses.

 

Losses in the trade are inevitable:

 

According to the market moves it is not possible to make money all the while with strategies that aim at a very huge win rate.

 

 

You can follow two kinds of methodology to restrict the losses.

 

1.      Consider that your entry was right but the timing was wrong and close the trade or

2.      Open a trade in the opposite direction that shall counter the actual trade and change the net position.

 

Deciding how much loss can you tolerate?

 

OctaFx broker suggests that once you have understood that you will have to face losses in the trade then decide how much loss you can tolerate without losing your nerves.

 

Execute the trading method you believe in:

 

When you have decided the losses that you can tolerate, you should decide the method that you shall follow. OctaFx broker emphasises the need to back test the same so that you do not miss out the winning streak.

 

For catastrophic losses:

 

Sometimes you may not be able to restrict the loss even after implementing ‘stop loss’ technique. The best way to deal with such situation as per OctaFx broker is to trade the currencies for which the central banks provide a policy of swimming.

 

Conclusion: If you accept that losing in trades are natural you shall no doubt find ways to cope with it.

[Squirrel Nuts]

That's quite a nice article, thanks for sharing it here it would help us a lot.

[radex78]

Yes good article and might as trader they can trying to trying these strategy to minimize the risk appettite in forex trading, maybe also need more experience and practice with trial and error, and not instant success in trading, as trader also need keep discipline with risk management plan and improve strategy with more practice

[gaban]

Yes good article and might as trader they can trying to trying these strategy to minimize the risk appettite in forex trading, maybe also need more experience and practice with trial and error, and not instant success in trading, as trader also need keep discipline with risk management plan and improve strategy with more practice

problems in the risks that would cause a failure in forex trading, and we are to learn to understand the risks to be managed properly in a demo account or demo contest. wanted in profits in forex trading is not that easy to get but need to constantly strive to learn and sacrifice

[aliforex]

Yes good article and might as trader they can trying to trying these strategy to minimize the risk appettite in forex trading, maybe also need more experience and practice with trial and error, and not instant success in trading, as trader also need keep discipline with risk management plan and improve strategy with more practice

in brokr articles Porex is one way to make us easier knowing every tool ways, and once we understand our new understanding of the individual account, ranging from a demo account, demo contest and after the proficient we can use the account realnya

[radex78]

problems in the risks that would cause a failure in forex trading, and we are to learn to understand the risks to be managed properly in a demo account or demo contest. wanted in profits in forex trading is not that easy to get but need to constantly strive to learn and sacrifice

I think good idea if any trader start with looking free capital like as take part in demo contest, beside can learn and test skill trading also we can trained and improving skill to become winner, many broker provided demo contest but might has different rules and as trader also need to reading rules ragarding with prize and contest

[jamante]

here is a simple way to deal with loses, simply let it go, like a bad beat, a heart break, just eff it and let it go.. 

[radex78]

here is a simple way to deal with loses, simply let it go, like a bad beat, a heart break, just eff it and let it go..

Trader having heart and felt painful when get loss, and sometime still remember in minds when losing especially getting big loss, this is making painful and might regret in trading journey, but as trader that having good mental I think will come back again and start when ready again

[aliforex]

Trader having heart and felt painful when get loss, and sometime still remember in minds when losing especially getting big loss, this is making painful and might regret in trading journey, but as trader that having good mental I think will come back again and start when ready again

really really, surely every trader will feel the same, because the senior trader at once if a loss would be no sense of disappointment, and the level of psychologists trading it is always decreasing, so we'd have to be more study will address every way and obstacles to good to be able managed properly

[Gee Dee]

Whenever we are dealing with forex trading we must consider both the probabilities of win and lose. No matter how much money you are earning in this world market place no one will guarantee that you will never loss. So, each foreign currency trader must know how to deal with the losses. In order to handle losses carefully, a trader should accept the fact that losses are inevitable parts of forex trading journey.

[bearhugs]

Forex is not a way to gain easy money, you should be up-to-date all the time, analyze a lot of factors. Otherwise, if you don't really understand what you're doing, it's just a kind of gambling for you.

[lal.remigiusz]

Sometimes the price movement was lie to us and make us lose.

[Santina]

A trader should prudently follow a strategy to cope up with the losses that occur and keep them under control.

[uncle gober]

with the existence of a trading plan trader must be able to be better and can be more leverage in managing funds and risks that exist to be able to generate profits in accordance with expectations.

[bearhugs]

So many traders fail because of psychological mistakes like taking the profits too soon, increase the size of a trade or trade whatever comes because they are bored because the market is ranging and there aren’t clear occasions.

[uncle gober]

a good psychological condition and true it will be needed by the trader, this is done so that traders can be more maximal in survival and able to manage funds and risks in the real account well.

[Namu]

the ability to analyze what is owned by a trader is indeed very important, traders will really need that ability to be better and maximum in seeing the opportunities and risks in forex better

[uncle gober]

with the ability to analyze good and true indeed traders can be facilitated to be able to see the opportunities and risks that exist in the real account properly, so that traders can be better and be more maximal in carrying out existing trading activities well and be more maximal in surviving on a real account.

[Namu]

see a lot of benefits that we can get from a demo account, no wonder we should be able to use the demo account as well as possible. we can start using a demo account from FreshForex.

[Sininfinity]

So many traders fail because of psychological mistakes like taking the profits too soon, increase the size of a trade or trade whatever comes because they are bored because the market is ranging and there aren’t clear occasions.

 

One of the many reasons why traders fail. The market has lots to give but a trader has to be worthy of getting it. No one can think about doing it overnight.

[bearhugs]

So if you do not want to lose your capital, first get in deep with the forex market, practice how to trade by signing up with a forex broker and trade using a Demo account.

[Namu]

The risk of every business will always be there, so traders continue to improve their trading skills so we can better understand trading management properly. My main goal is to trade at FreshForex to be successful in the world of forex trading

[Sininfinity]

Those who are seeking success in a certain broker, I can guarantee you that you will not be successful. Their vision is very narrow and you don't want to expand their horizons so success won't come to them.