I think these losses are the price paid as compensation to learn experience from the mistakes done in forex trading, however we can also learn from others experience instead of making loss at our own. Forums are the best way to share and learn from fellow traders.
How do you handle your losses?
- Thread starter Rambo35
- Start date
kingsman
Sergeant
- Messages
- 202
It is reality that loss always give the lesson and we should learn from our mistakes as loss is the best mentor and I can handle my loss as I always learn from my mistakes and I am earning reasonable amount, keep in mind that learning from loss is the best revenge.
EuroTrader
Sergeant Major
- Messages
- 1,051
As a trader if we will make some mistakes in doing our trading then we can easily get losses in our trading accounts. We will need to use such a trading strategy that is less risky for us and try to minimize our losses
To be honest, I am very sincere on my profit ratio; like usually I use 1:3; 1:4 profit ratio in my live trading! That means, i am able to recover my 3 losing trades by only one TP! That’s my main strategy of recovering my losing trades! On the other hand, I don’t increase my trading lot size, I always use fixed trading lot size in my trading! Thus I make dealing with my losing trades!
hafizmohd81
Private
- Messages
- 11
It sounds to me like some sort of martingale. Isn't it?
Pharaoh
Brigadier General
- Messages
- 20,308
No, it's just good risk management. To simplify the description, imagine if your SL was always 25 pips and you always set your TP in the 75-100 pip range. Then it would take 3 or 4 losses to wipe out one win.
Of course, if you don't put a good system behind it, you'll end up averaging 4-6 losses per win, so this risk/reward ratio is only part of an overall trading plan.
Of course, if you don't put a good system behind it, you'll end up averaging 4-6 losses per win, so this risk/reward ratio is only part of an overall trading plan.
SL and TP are necessary when you need to restrict the amount you can lose to certain % from equity. When position is relatively small to the deposit size like 0.05 lot to 10K then you are unlikely to pick a trade that can blow out your account and trade without stop loss.
I think there should be a margin for loss. I keep in mind how much loss can be occur in this particular trading that I am going to do. I feel bad in loss but accept it . we can not get rid of it although do some good plan for managing and controlling on it.