How Do You Take Losses in Forex Trading?

[moonchild]

Taking losses is an art and many people have different ways they do it, in this short post we will explore different ways you can learn to take losses and also the comment section is open to hear from you.

Waiting till stop loss, this means when you enter a trade you should not just get out because you're negative, you ain't till the trade hit your stop loss, this depends on how strategic your stop loss placement is.

Out and About, this process deals with getting out of the market as soon as you see an evidence that your trade is wrong, you don't even have a stop its a predetermined mental stop where you get out of the market as soon as you see signs, this is mostly common with scalpers.

 

[Carson20t]

I do not fully understand the help you have shared here, The thing is that every trader must have proper risk management. First of all, a forex trader needs to have a trading plan, the trader must also have a trading strategy and remove the fear and greed. A trader must understand and back-test their strategy before opening a position or many positions. The rest is to be left to the market and hope it goes our way. When we analyse the market then we are all set. Retail traders do not control the market movement. Ours is to create the best strategy, backtest it and the rest is not in our position to call the shorts. With the grasp of this then one can become a profitable trader in no time and avoid losses to the point of blowing the account. We as successful traders should not blow our accounts. Losing money is inevitable but by blowing up the account then we have not grasped the formula and acquired the skill fully.

 

[moonchild]

I do not fully understand the help you have shared here, The thing is that every trader must have proper risk management. First of all, a forex trader needs to have a trading plan, the trader must also have a trading strategy and remove the fear and greed. A trader must understand and back-test their strategy before opening a position or many positions. The rest is to be left to the market and hope it goes our way. When we analyse the market then we are all set. Retail traders do not control the market movement. Ours is to create the best strategy, backtest it and the rest is not in our position to call the shorts. With the grasp of this then one can become a profitable trader in no time and avoid losses to the point of blowing the account. We as successful traders should not blow our accounts. Losing money is inevitable but by blowing up the account then we have not grasped the formula and acquired the skill fully.

What I'm trying to say is that there are different ways to take losses.

1) You can wait till price hits your SL before you get out of the market.

2) Or you get out immediately after you notice you're wrong.

Which kind of trader are you between the two?

 

[Carson20t]

What I'm trying to say is that there are different ways to take losses.

1) You can wait till price hits your SL before you get out of the market.

2) Or you get out immediately after you notice you're wrong.

Which kind of trader are you between the two?

I am the type of trader who will protect my account using a stop-loss of course. If I have my psychology straight and my Risk management accurate. With the proper backtesting then I should be ready for the possible outcome because I have to wait for a confirmation before taking a trade. This is why a lot of people must acquire the skill first before going to trade in a live account. To be a profitable trader you need to factor in a lot of things and forget defining forex as a get-rich-quick scheme.

It would be very devastating to get out of the market and only to notice again that the trade has gone towards you in my opinion. To make it even worse I do not think one can recover that experience when you notice you would have made a lot of pips from there.LOL

I believe that Forex can add a reasonable income to our portfolio but we need to acquire the skill.

 

[FinTrader]

I always set stop loss and take profit. Therefore, I always know how much loss I will receive in case of an unsuccessful transaction. However, I never try to compensate it immediately. I'm waiting for new signals from my trading strategy for a new trade.