Never ever add to a losing position

Pinalli

Master Trader
Jan 31, 2009
334
4
54
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!".
 

Pinalli

Master Trader
Jan 31, 2009
334
4
54
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

Master Trader
Jun 20, 2009
112
2
47
Yes definitely it is..... Most of the forex traders try to rectify by averaging out. but end up loosing trades.
 

Sofia

Master Trader
Jun 20, 2009
112
2
47
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

Master Trader
Dec 13, 2008
503
3
47
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

Master Trader
Jan 31, 2009
334
4
54
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

Master Trader
Jun 20, 2009
112
2
47
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.
 

Pinalli

Master Trader
Jan 31, 2009
334
4
54
Thanks all for you suggestions and opinions. I believe that more you trade the more you gain experience and the better is your trading.

As we grow, we learn latest trading techniques and sharpen our skills.

Its great to see that so many people use stop loss and know how to manage risk....

Keep trading!
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
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!".

Exactly, it is! I never modify my SL or TP positions in my running trades. I just make analysis before opening any trade position, then I just wait for the result, either it’s TP or SL.