It's sometimes difficult to control emotions especially if you employ aggressive trading strategy with large gains or drawdowns so I would advice to decrease risk and set tighter stop loss.
question- what are the things that a trader should never do?
- Thread starter jkm
- Start date
FriendlyFX
Master Sergeant
- Messages
- 282
Trade when angry or revenge trade.
I've done both and can attest to the carnage that follows both
I've done both and can attest to the carnage that follows both
fxoday
Recruit
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- 884
Revenge is not a good answer to developing trading skills, usually, decision-based revenge still involved emotions like the desire to recover previous losses in a short time.
Griswyn
Recruit
- Messages
- 1
It's obvious and you're fully right.
guess that stop loss is one of the most necessary things in trading to comply with. as for tp, then it doesn't really matter whether you use it or not, i your strategy implies using tp, then why not, it will help you to develop a discipline. if you comply with classical risk/reard ratio like 1:3, then tp is also a mandatory.
i used tp only when i started trading just because i learnt that tp helps traders to understand the basic mechanism of trading. i agree with this point of view but anyway i don't use tp these days as i thought that sl is much more preferable to use
Lavat
Recruit
- Messages
- 3
suuure!!! trading without stop loss is all about crazy traders. i know bunch of professional traders who have been trading for more than 5 years and they still use stop loss as they understand that wise approach to risk management is the necessary thing.
btw, idk whether all the beginners comply with this rule, but they have to realise that there is nothing for free in trading. they really have to sacrifice their time, their mental health (but ofc they should watch for it), their money and stuff like that. they must be prepared to such situations and always tryna take them for granted.
Faelar
Corporal
- Messages
- 109
trader should never give up trading in case he has decided to start trading... weird statement
anyway, it's really like that. i dunno know maybe I am so responsible that I got used to pursue any case, but i know that it's a good and useful characteristics of a trader.
you should tryna abstract from all the fears and everything that you are afraid of. afraid of losing the funds? np, earn new ones. scare of failures? lol, all traders face failures daily and it only helps them to move foward.
You should set the priorities correctly and wisely make decisions, set the goals and never give up.
anyway, it's really like that. i dunno know maybe I am so responsible that I got used to pursue any case, but i know that it's a good and useful characteristics of a trader.
you should tryna abstract from all the fears and everything that you are afraid of. afraid of losing the funds? np, earn new ones. scare of failures? lol, all traders face failures daily and it only helps them to move foward.
You should set the priorities correctly and wisely make decisions, set the goals and never give up.
However you should always trade with the funds you can afford to lose, because when you lose something you can afford you become emotionally attached to trading and try to solve your financial issues by taking more risk. It's effectively a trap.trader should never give up trading in case he has decided to start trading... weird statement
anyway, it's really like that. i dunno know maybe I am so responsible that I got used to pursue any case, but i know that it's a good and useful characteristics of a trader.
you should tryna abstract from all the fears and everything that you are afraid of. afraid of losing the funds? np, earn new ones. scare of failures? lol, all traders face failures daily and it only helps them to move foward.
You should set the priorities correctly and wisely make decisions, set the goals and never give up.
fxoday
Recruit
- Messages
- 884
We can take lessons from experience and mistakes, trading is a simple job buy and sell currencies pairs to catch profits, in simple theory just need to buy at low and sell at high, because forex provided two ways opportunities even buy and sell has potential gain, and the risk too. Greedy is the most enemy for many traders as human nature. Fear of missing out also becomes the most mistake many traders relevant to greed.
Chadistrading
Private, 1st Class
- Messages
- 32
I have 3 Nevers for you!
- Never trade with money you can't afford to lose. Trading with money you can't afford to lose can lead to emotional decisions and taking unnecessary risks.
- Never chase losses. Trying to make up for losses by taking bigger risks or trading more frequently can be a dangerous approach that can lead to further losses.
- Never trade without a plan. A trading plan is essential for success in forex trading. It should include clear entry and exit points, risk management strategies, and a plan for adjusting your approach as market conditions change.
Juanstevenson19
Banned
- Messages
- 58
- Controlled by emotions and falling into emotional biases such as overconfidence, or FOMO
- Trading without risk management in place
- Choosing the wrong trading platform
