in

What To Do After You Lose In Forex?

#Forex #ForexMoneyManagement #ForexRiskManagement

I invite you to my club where you can learn all my trading techniques –
👉👉👉 https://tradersacademyclub.com

✅ How to deal with losses in trading? ✅
Losses are part of any business. Trading is a business just like selling ice cream or doing insurances. Almost ny business suffers losses. Whether it is a single occurrence or you are dealing with some seasonal pattern (think about swim year for example – winter season is definitely not their strongest season) the losses are part of the game.

Since we can’t avoid losses completely, we should figure out a way how to embrace them and deal with them.

If you are still a strong believer that there is a holy grail strategy without losses I suggest you to change your mind or change your hobby.

As long as your losses are controlled and anticipated your trading account will continue growing. If you however, choose to ignore the fact that a loss will occur eventually, you are likely not following any serious money or risk management and you are likely going to blow up your account very very soon.

✅ What does it mean to “cut early” in trading and forex? ✅
To cut early is a trading jargon for lowering the exposure or completely closing the trade once there are some signs against.

The tricky part is that “weak hands” and the unexperienced traders confuse real signs against with emotions.

Let me give you an example.
Say you are buying a given market. You protection or stop loss is placed 2 support levels away from the entry. In other words, you buy at $100, first strong support is at $90, second one is at $80.
On the very next day you wake up, and you see the price trading at $88, below the previous key support zone. This is a real sign against. This is where you may want to consider trade management also known as (in this context) ” early cutting”.

That could be entire cut meaning close the entire position. That could be closing just part of it to lower the exposure.

On the other hand, you have the emotional trader who is doing the same, buy at $100, stop loss as $80, with strong support at $90 as well.
This time the price drops to $95 which is still above the strong supportive level. Problem is the unexperienced trader see a negative floating PnL and panics. He cuts the trade without any realistic reason to do so.

✅ Do NOT move your stop loss ✅
There are many trading strategies out there. I use trading methods which do not involve stop loss (fixed one, i do have a manual exit strategy) and not using a stop loss is perfectly fine. The problem is, that not having a stop loss beforehand is very different than removing the stop loss, once you have seen the price coming closer to it.

Those are two completely different scenarios and the second one is really really risky business. If you are in the habit of doing that, you better stop until its too late.

✅ Do not take trades without risk management. ✅
As mentioned above not having a fixed stop loss is completely ok if this is your trading strategy/method. Not having a stop loss doesn’t mean that you are not applying a risk management to your trades.

Take scalping for instance. Many scalpers don’t put a fixed stop loss. They simply watch the position unfolds, and have an exit plan before entering the trade.

If that exit plan is triggered, they would manually close the position. So not having a stop loss in place doesn’t mean you are trading without a risk management.

✅ Have proper trading plan before entering. ✅

What most newbie traders fail to understand is that emotions play a very big role in trading. This is why having a solid plan and strategy that you actually follow is critical to your success.

Just having a plan and a strategy though is not enough. If you are not following them (like moving or removing your stop loss) they are useless. This is where discipline comes in play. You have to trade your plan and strategy and you have to build confidence in it.

What are my trading techniques? You can watch the videos here and discover great forex strategies

👉Fibonacci retracement – https://youtu.be/Dok77B_socA
👉 Cycles and waves trading (Price action trading) – https://youtu.be/wRpcME6R3Rc
👉 Japanese Candle patterns – https://youtu.be/iPXeKYruqQQ
👉 Trading In The Channels – https://youtu.be/ckXD7joXcv8
👉 Trend lines – https://youtu.be/9qwAk9h3Hds
👉 Divergence, Hidden Divergence – https://youtu.be/WUCSHDVjdJ0
👉 Convergence and false breakouts – https://youtu.be/siSZZte6QHI

👉 FEEDBACK AND TESTIMONIALS from my members –
https://www.forexpeacearmy.com/forex-reviews/7826/tradersacademyclub-reviews

You can read my daily posts and trading ideas here –

http://b.link/vladimirblog

✅ Follow Me in social media:

http://www.youtube.com/VladimirRibakov
https://www.facebook.com/tradersacade…
https://twitter.com/VladimirRibakov
http://b.link/vladimir-telegram-group

Yours to success,
Vladimir Ribakov

What do you think?

1071 points
Upvote Downvote

Written by Nancy Bryant

Comments

Leave a Reply

Leave a Reply

Your email address will not be published.

Loading…

0

Best Forex Strategy Highs & Lows of The day profits

OneFX Forex Copy Trading ! Today 500$ Live…. withdrawal…