Managing Your Losses the Right Way Losses are the most difficult part to deal with when trading the Forex market and other markets in general due to the tremendously negative impact such as parameter has on the trader and or the investor. It is really important to accept that losses and consecutive losses can incur from time to time, and the greatest challenge is to be able to manage your losses via foreseeing the market from a long term perspective. There are three major steps that you can apply as a trader so that you can overcome the negative feeling of losses at a faster pace. The very first step is to have a strategy and follow it day in and day out. If your stop loss factor is for example 50 pips, always apply the same stop loss n number of pips. Every time you change your stop loss parameter is like implementing a new strategy. The second step has to do with emotions. Remind yourself at all times that losses can happen and are part of your trading plan. The market cannot be 100% predictable, but you can be 100% efficient if you minimize your negative emotions. Last but not least, re-balance your emotional, strategic, physical and mental state of mind. Do not place any trades in case you are feeling stressed or angry, simply go away from your trading platform till you have calmed down. STO: TRADE WITH US!!!
Posted on: Fri, 12 Sep 2014 08:52:18 +0000
Trending Topics
Recently Viewed Topics
© 2015