How do you handle your losses?

Dutchy86

Recruit
Messages
64
Everyone will have this and accepting losses is part of the mentality and knowing when to cut a trade. Also important not to go chasing it either
 

bigdolly

2nd Lieutenant
Messages
1,059
Everyone will have this and accepting losses is part of the mentality and knowing when to cut a trade. Also important not to go chasing it either
I don't pay attention to losses on a single trade take into account such characterises as average loss per trade, max drawdown, win rate, etc. If you want to make unbiased conclusions about your performance you'd better to explore statistical properties of your trading like the one I mentioned above.
 

AlecR

Corporal
Messages
99
It is reality that we have to live with losses in forex trading. Forex trading is not a loss free business. Some losses are bearable as a routine matters. But for big losses traders had to learn how to reduce them in future, they have to either change their strategy or get more experience in trading and improve weak points that are cause of loss for a trader on regular basis.
 

bigdolly

2nd Lieutenant
Messages
1,059
I don't exceed my daily loss (2% from equity). It's the only rule that helps me to keep my loss limited and manageable.
 

Dora_WalletInvestor

Private, 1st Class
Messages
60
I don't pay attention to losses on a single trade take into account such characterises as average loss per trade, max drawdown, win rate, etc. If you want to make unbiased conclusions about your performance you'd better to explore statistical properties of your trading like the one I mentioned above.
This is great advice, it is usually better to look at the long-term profitability of your trading instead of overanalysing every trade you lose.
 

EuroTrader

Sergeant Major
Messages
1,052
Losses are not to make us tense, they are regular part of trading which are manageable if you are eager to know why they occur. Then efforts to minimize the effects of loss are valuable when trader do planned trading and losses are in control. Trading without loss is not possible however unlimited loss is not bearable for even high investors.
 

Charlieboy885

Recruit
Messages
11
Losses are difficult to deal with. You can plan all you like but sometimes things just don't go as you thought they would. I think the key is to step away, take a break and just learn from it.
 

ScottHughes

Corporal
Messages
106
I face losses all the time. Manual trading losses are hardest to take but one thing makes it worse. that is trading with money you can't afford to lose. At the begining I learned the hard way, now I look back on it and often think everybody need to go through similar experiances in this game
 
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