Never ever add to a losing position

[Pinalli]

I think this is one of the biggest "diseases" traders have. A stop loss is like a red light, it's not a suggestion. It tells you to get out of the market not to add more money to the trade. It simply makes me angry to see people adding money to a losing position. It has no justification except one. HOPE! They don’t say "gee, I was wrong and should have exited in my stop loss level", they say "I am correct about the direction of the market, it's just that my stop loss was placed to close to my entry. If I hang in there and add more money the trade will surely go my way and I will not only make for the loss but I will make much more since now I am adding to my position at a much better price!".

[FXexpert]

I definitely agree with you, never add to a losing position, it will most likely cause further loss.

[MechXTrader]

If your stop Loss is in a logical place (near support or resistance) and you know WHY you entered, you should have no reason to add to losing position or even stay in it beyond its initial stop loss.

[Pinalli]

Yea right!! Stop loss is a good alternative. but as i said stop loss is like a red light, it's not a suggestion.

[Sofia]

Yes definitely it is..... Most of the forex traders try to rectify by averaging out. but end up loosing trades.

[FXexpert]

You never want to risk losing more money on an already losing trade.

[Sofia]

strategy that is perfected down to the details is essential to be successful in forex markets. There could be many options for spelling out your style and methods as for example some traders would like to concentrate on certain calculation or studies, and others might prefer to focus on a broader analysis of trends. A combination of technical and fundamental analysis is what most professional Forex traders would advise you to concentrate on. But of course everything is up to your decision and what you think fits your way of trading best. That is the key to any good forex trading strategy.

[FXexpert]

I definitely agree, having a good strategy can help maximize profit & minimize risk, technical analysis is a more consistent way of looking at the market, but fundamentals will determine long term market trends & shifts.

[Pinalli]

Originally Posted by FXexpert

I definitely agree, having a good strategy can help maximize profit & minimize risk, technical analysis is a more consistent way of looking at the market, but fundamentals will determine long term market trends & shifts.

True! strategy is the key. But the best is the one which you create yourselves after keeping all the investment protocol keeping in mind.

[Sofia]

Originally Posted by FXexpert

I definitely agree, having a good strategy can help maximize profit & minimize risk, technical analysis is a more consistent way of looking at the market, but fundamentals will determine long term market trends & shifts.

Actually i believe risk and return. the more you risk the more you return.