Unfortunately for traders, it is nearly impossible to eliminate losses entirely. It would be a truly rare occurrence to actively trade for even as little as a week without incurring any sort of loss along the way. The primary cause of this is the volatile nature of currency markets.
With that being said, here are some ways to minimize your losses and keep your overall trading profitable.
1. Realize That Losing Is Part Of The Game.
Once you understand and accept that there will be losses, it will allow you to better prepare for them, as well as to move on to the next trade. It happens to even the best traders, so don't let it discourage you. Forex markets can be fickle, so realize that before you begin.
2. Know When To Cut Your Losses
Don't try to rescue a losing position by pouring more cash into it. If a trade is failing, allow it to die and move on to the next one. Also, use this as an opportunity to evaluate what went wrong with this trade, so you are less likely to make the same mistake twice.
3. Be Cautious
Always be aware of the risk profile of any position before you enter, and until you are more experienced try to avoid trades which have higher risk. It is often safer to follow existing trends than to attempt to predict changes in the markets.
4. VISIT www.forexfactory.com - There you get 80% of news that will happen all through the week. when you get there {1}Click the present time, it will take you to another page {2}Change dst on to dst off {3} Change time zone to GMT+1 {4} Save changes {5}Click calender With that the time will now be d same as Nigeria time. The box with red color is the most active news. Also note the news on every 1st week of a new month are very active{especially Thursday and Friday}
IN TRADING {1} Either you leave trade before the news {2} You move price to B.E that is you are already in T.P {3} Or you allow the news take your S.L OR T.P.
No comments:
Post a Comment