somrat4030
Well-known member
Thank you
-
Attention Forex Brokers, FX Companies & Hedge Funds.
forum.forex is available for Acquisition
Enquire
How you can avoid losing money in forex trading?
- Thread starter somrat4030
- Start date
Polakandil
Well-known member
Stop-loss is one great feature in the forex trading platform, we can put manually or use a trailing stop to move stop loss automatically, stop loss is one way to manage the risk because not all positions will make a profit, stop loss is required to control the risk.
brunildafulton
Well-known member
Keeping a record of previous trades is also a good way of avoiding losses. By maintaining a trading journal and reviewing it periodically gives important feedback which serves as an effective way to learn from both losses and successes in forex trading.
ellisdelgado
Active member
Yes, right. Stop loss is a great tool to limit losses. While you cannot avoid losses completely, a stop loss can help minimize the risk exposure and hence, help you avoid losses to a great extent.
Polakandil
Well-known member
Of course this is really help to manage the risk, but beside stop loss there are trader that trying to use trading pair correlation for hedging position, like as trade on buy EURUSD and sell EURJPY, usually both pair has positive correlation.
Yes!
Imagine a scenario where you have an open trade overnight and an important new occurs while you were sleeping or away from you computer. This news spikes the market in the opposite direction to your position and the market runs away against. How would you prevent your capital from being wiped out while you were sleeping? It's stop-loss which comes to your rescue.
Imagine a scenario where you have an open trade overnight and an important new occurs while you were sleeping or away from you computer. This news spikes the market in the opposite direction to your position and the market runs away against. How would you prevent your capital from being wiped out while you were sleeping? It's stop-loss which comes to your rescue.
MarnieLarge
Active member
It is impossible to avoid losing money in any trading, and forex is not an exception. The more you get experienced; the chances of you losing money reduce. The rest depends on your trading style and skills to analyze market conditions.
somrat4030
Well-known member
Yes, right, stop loss is very important for safe trading
jacko
Member
Yeah, I could never understand it... people think the most complicated strategies are the most profitable ones.
What is the point of a strategy nobody can understand?
You can't do that and I know it. In fact, no one can avoid losses in forex trading. That's inevitable.
But what you can do is take lessons from your losses and never repeat the same mistakes ever again. This won't guarantee 100% profits but at least, you might be able to increase the number of your profits over losses.
But what you can do is take lessons from your losses and never repeat the same mistakes ever again. This won't guarantee 100% profits but at least, you might be able to increase the number of your profits over losses.
GriderGlib
Well-known member
If you want to avoid losing money, you need to stop avoiding stop loss. People often think that stop loss is hit too soon and do not consider placing it to save the money. Instead of saving, they lose even more. If your stop loss hits soon, you need to analyse before placing it. Do not place it above a strong support level. Try to place it a little below the support so that if support breaks then you don’t lose more money or if the price bounces up from support your stop loss is not hit soon.
Polakandil
Well-known member
In managing risk, the trader maybe use stop-loss with distance wider than target profit, they have reason with use wider stop loss hence the price will getting more chances to hit target profit, but using this way, if a trader gets loss hence will need to high patience make recovery because loss is high.
Another trader maybe uses stop-loss lower than target profit, they have reasoned with right stop-loss hence will get more chances to open new order because tight stop-loss when one time get loss the account still left funds.
Another trader maybe uses stop-loss lower than target profit, they have reasoned with right stop-loss hence will get more chances to open new order because tight stop-loss when one time get loss the account still left funds.
Thaumatology
Member
One can avoid losing money in forex trading by knowing that it is a risky investment and that one can lose all of the money if not careful. A trader should know about money management and should have a specific strategy to follow. This will give a better chance to avoid losing money in forex trading.
WalletInvestor
Well-known member
These are very sound plans. Some other tips I would include is to use a good risk management strategy (such as calculatin risk% or risk-to-reward ratio) and to avoid trading on emotions - not just greed, but also fear and anger.
Avoiding loss is what every trader focuses on mostly. Many struggle with it as there is no trader who never lost. Even the successful traders make losses every now and then. But most of their trades are profitable. I think it takes a lot of time and trading to reach that level. Keep on working on your strategies and you will get better with each completed trade.
There are some points every trader should follow. Forex trading is all about managing your risk, and once you figure out how to do that, you see the results. Some of the things I follow to avoid losses are-
- Assign a risk/reward ratio to my trades.
- Use stop loss and take profit order.
- Risk 1-2% per trade.
- Avoid overtrading.
@Thaumatology
Indeed! If traders focus on how to manage risk and take the right steps—use of SL and T/P order, control emotions, and calculate risk & reward—then making money in forex becomes less complicated.
Indeed! If traders focus on how to manage risk and take the right steps—use of SL and T/P order, control emotions, and calculate risk & reward—then making money in forex becomes less complicated.
Similar threads
