How can we handle losses?

Discussion in 'Newbie Questions' started by Rambo35, Jul 21, 2014.

  1. Dakun Fredricks

    Dakun Fredricks Newbie

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    well losses are also an integral part of your trading, they really play an important role in making you learn a lot of things. they can be managed by the proper analysis including proper fundamental and technical analysis
     
  2. radex78

    radex78 Active Trader

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    Yes, sometime loss in trading inevitale, and we must accept these loss as part in trading, and actually we also can take lesson from these experience which we can learn from our mistalke that causing loss, might we in hurry to making decision, or we trade over confident and or we trade with greedy, we can learn from these loss.
     
  3. RaviSarao

    RaviSarao Trader

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    Don't lose hope. Just focus in the right direction and trade. Once you know that you are wrong and need to study more on the market. Do it but don't give up.
    Keep up the good work and always look forward to recover your loss.
    have faith in yourself.
     
  4. radex78

    radex78 Active Trader

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    Yes we don't need to lose hope because forex trading is not easy, faced with loss is common thing in trading which sometime inevitable, but with learning hence we will getting easiness to making profit in forex trading.
     
  5. Andrew101

    Andrew101 Active Trader

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    My friend, in this business, you learn to take losses. If you personalize losses, you cannot trade. Believe me, even if you’re good trader, you’ve predicted & traded right six times out of ten, you’re never going get it right nine times out of ten. So the most important thing in making money is not letting your losses get out of hand. Always remember this, when you are investing, don’t settle for what is comfortable. They are rarely profitable.
     
  6. myfxpt

    myfxpt Master Trader

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    As I have said before, if you keep your losses small they are no big deal.
     
    Alexfx79 likes this.
  7. Alexfx79

    Alexfx79 Active Trader

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    Hm, I just like this phrase! You are completely right! But if we would sum many little losses , we get a big one, so I can't say that small losses are no reason to worry about :)
     
  8. Lukas Schmidt

    Lukas Schmidt Trader

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    There is no doubt every trader will experience loss. As a forex trader your main goal needs to be to effectively and efficiently manage your risk on every trade and to begin viewing and weighing each trade setup in terms of possible risk to possible reward. Make sure to define your risk before entering a trade so you can sleep soundly at night with the amount of money you have at risk.
     
  9. myfxpt

    myfxpt Master Trader

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    Now we are talking about strategy performance rather than size of losses. If a strategy had a 99% success rate, then a small loss means nothing, but if it has a 99% failure rate...that's another story. Just goes to show, as I believe you allude to Alexfx79, that there is a whole lot more to this than size and frequency of losses. Many small losses in a row are indeed cause for concern...better check the strategy's entry/exit timing!
     
  10. James Hallow

    James Hallow Newbie

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    Every trader or investors (especially every terrible trader or investor) usually face losses in their trading journey. As overpowering as losses feel, we react to loss which is more important than loss.Not so experienced traders suffer a huge loss which can hijacked by the emotions. Some would try to trade through pain which is denying it. But it creates more turmoil for them. Some would withdraw, which is to sweep the loss under the rug to avoid making it an issue. Some would hunker down and would try to trade better to determine the recovery of loss. Some steps to avoid losses are:

    1. Accept it as your responsibility

    2. Stop trading

    3. Make a complete plan

    4. Make better plans

    5. Put your loss in perspective

    6. Be inspired

    7. Come back into game
     
  11. John Fulton Reid

    John Fulton Reid Newbie

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    There is a word no risk no gain. So everyone have the mentality to take some risk. Forex is a platform which gives you the opportunity to gain high profit as well as high risk. But if you maintain your trading in a discipline way gradually you can minimize your risk. You have to control your emotion when you are in trading. Keep your endurance in trading time then one day you will get success.
     
  12. Lukas Schmidt

    Lukas Schmidt Trader

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    What do you mean how we handle losses?? Losses are part of our trading, there is no way you can only earn, of course there will be loses. Every trader should take them as something normal and move on, so it doesn't affect you emotionally which can lead to more losses. Focusing more on the Risk Management and don't give up.
     
  13. Alexfx79

    Alexfx79 Active Trader

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    It seems to me that you've already replied to this thread, why do you need to do this twice, moreover, when your second post sounds like the first ? :)
    Nothing personal, it's just business. (C) :)
     
  14. Winjak

    Winjak Active Trader

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    Maybe he thinks that this info is too important to sound once..
    But it's obvious
     
  15. FxTimothy

    FxTimothy Trader

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    Well whatever you have lost its already past just forget about that .you just make sure don't Repeat the past ..do the fresh analysis do proper research on your losses and then look for good opportunity and am sure you will be good.
     
  16. Hafid

    Hafid Trader

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    To decrease your looses keep risk management rules, this books can help you:
    The Mathematics of Money Management: Risk Analysis Techniques for Traders Ralph Vince
    Profitability & Systematic Trading. Michael Harris
    Trade Your Way to Financial Freedom. Van K. Tharp
    ...Also diversify your deposit to different brokers.
     
    Alexfx79 likes this.
  17. Alexfx79

    Alexfx79 Active Trader

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    Nice books, the first one was very helpful, indeed.
    The others are worth attention as well.
     

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