How you can avoid losing money in forex trading?
- Thread starter somrat4030
- Start date
Polakandil
Well-known member
Forex trading is like how to manage money to make money, risk management is needed to protect from big losses in single plan trading, besides to improves the trading setup to find a profitable trading system.
Hippomobile
Active member
To avoid money losing in forex trading, you can take some measures, such as avoiding fake forex signals, using stop losses at the right time, avoiding emotional trading, avoiding greed etc.
@somrat4030 Indeed these pointers are very important for avoiding losing money. In addition to these patience, persistence and, clear understanding of factors affecting market trends are important.
Resplendent
Member
I don’t have a mantra that will help you save your money from losses. But I can surely tell you will find your own mantra with the time you spend in the forex market. Just know what you are doing and you will know where to improve.
Statoscope
Active member
There are a few things that you can do to avoid losing money in the forex market like not risking more than you can afford to lose and avoiding leverage. You must also stay away from all types of shortcuts so that no one can fool you and make you lose.
That was an informative post. Even though losses are sometimes inevitable in trading it is better to take all the necessary measures so that we can be free of the guilt that comes after losing our hard earned money because of a stupid mistake. Risk management is crucial and it acts as a shield that could save our lives as traders in forex.
jeanpatterson
Active member
Build an exit strategy even before you build an entry strategy. Stick to your trading plan and never let any distraction make you make changes in your plan.
Polakandil
Well-known member
I can't avoid the loss, but only use a risk management plan, 1% or 2% is enough.
Learn to place the best time and price to minimize the mistake.
Besides, exit points are also important, and exit strategies should be applied.
Learn to place the best time and price to minimize the mistake.
Besides, exit points are also important, and exit strategies should be applied.
Alexandra Preston
Member
Losses are not in your control but what you lose is definitely in your control. You just have to make sure that you never take a risk with an amount that you cannot afford to lose. Keep your risks low until you are ready for bigger losses.
When we start gaining experience in the market, we reduce the potential losses. It is impossible to predict where the market will go, but we can practice risk management and control our emotions as well. It is crucial to know how to exit and avoid letting anything change our decisions significantly (which often happens in response to FOMO, fear, greed, etc.).
Jaculation
Member
It’s not going to be easy. Losses are common and unavoidable. So, your focus must be on not trading with anything that is beyond your risk appetite. Determine how much you can afford to lose and build your plan as per that.
These tips are truly helpful for a beginner. We may not be able to avoid losses all the time but we can cut down the losses to a great extent with proper risk management. Most new traders encounter losses in a row because they lack knowledge and trading skills. These losses can be minimised by limiting the risk per trade and sticking to a simple strategy that works for you.
PriceNTime
Active member
You can look to shore up your trading to take higher probability trades but you will never avoid losses.
I don’t want you to set any kind of unrealistic expectations but as you are going to start your career as a forex trader, don’t think that there will be a time when you will not lose any money and only make it. So, better be mentally prepared for the losses so that they don’t hamper your future trades.
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