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.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
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!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
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 ?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.
Maybe he thinks that this info is too important to sound once..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)
Nice books, the first one was very helpful, indeed.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.