Actually, in all businesses, including in forex trading, loss is normal. we just try to minimize this loss so that our account continues to grow with positive growth. the loss that I mean in the title of this article is excessive loss.
Theoretically, the risk of loss in a business is always there. And in practice, both from personal experience and experience of other traders' friends, whose name is loss position usually still exists, no matter how effective our trading system is, even with a small percentage loss. Okay, let's be aware of the following, so you can avoid losses (excessive) in Forex Trading.
1. Don't Over-Trade.
Don't do over trading. Pay attention to your margin resistance. A trader friend even suggested, in addition to paying attention to margins, the quantity of open position is also not too much. As a rule of thumb, for scalping, traders can simply open positions around 10 positions per day. Whereas for day traders approximately 2 times a day. To swing traders even less.
2. Don't Over-Confident Confidence.
Especially believing in one's own analysis, is a must. But, excessive self-confidence can backfire. Frankly, I once got a Margin Call (MC) because of being too confident, playing hit opened long positions at each Fibonacci level which I believe would be resistant. Evidently? Prices continue to shot up and my money is gone for so many times..hehehe.
3. Do not fix on technical, beware of news releases.
For those of you who are technicalists, it's okay for you to rely on technical analysis and indicators. But, it's a good idea to keep an eye out for news releases. Being a technicalist doesn't mean you don't know what it is and when it's Nonfarm Payroll, right? Even if you do not like the market conditions that sometimes do deviate from technical, at least by knowing when the news release we can maintain a position that is still open, or maybe even so when to avoid the market temporarily.
4. Only Enter the Market If You Are Sure (Trading by Moment)
If you are not sure about the market conditions, or you feel the market is not attractive, then never mind ... no need to enter the market first. For example, the market conditions are sideways and you don't like sideways conditions, just hold on to enter the market. Wait for the breakout first.
5. Stop loss
Many friends, especially new traders, don't like Stop Loss, because they think this SL "accelerates" losses rather than "limiting" losses. In my opinion, that's not the fault of the SL ... but it's our fault in placing the SL. Trading without SL is sometimes tempting, because "as if" we never get the wrong position. But I need to remind you once again: be careful. If we trade without SL, then once we realize the wrong position, usually our account has collapsed.
6. Cut Loss If Needed
If we realize a position that is clearly misguided, do not hesitate to do cut loss. If you feel you are always hesitant or affectionate to do a cut loss, then go back to the previous suggestion: always use stop loss so that the automatic position is closed when it reaches a certain loss. 7. Never Stop Learning Never stop learning forex trading, both learning in theory, learning from mistakes and learning from experience. And don't forget, enjoy this learning process. Happy Ttrading Guyss!
1. Don't Over-Trade.
Don't do over trading. Pay attention to your margin resistance. A trader friend even suggested, in addition to paying attention to margins, the quantity of open position is also not too much. As a rule of thumb, for scalping, traders can simply open positions around 10 positions per day. Whereas for day traders approximately 2 times a day. To swing traders even less.
2. Don't Over-Confident Confidence.
Especially believing in one's own analysis, is a must. But, excessive self-confidence can backfire. Frankly, I once got a Margin Call (MC) because of being too confident, playing hit opened long positions at each Fibonacci level which I believe would be resistant. Evidently? Prices continue to shot up and my money is gone for so many times..hehehe.
3. Do not fix on technical, beware of news releases.
For those of you who are technicalists, it's okay for you to rely on technical analysis and indicators. But, it's a good idea to keep an eye out for news releases. Being a technicalist doesn't mean you don't know what it is and when it's Nonfarm Payroll, right? Even if you do not like the market conditions that sometimes do deviate from technical, at least by knowing when the news release we can maintain a position that is still open, or maybe even so when to avoid the market temporarily.
4. Only Enter the Market If You Are Sure (Trading by Moment)
If you are not sure about the market conditions, or you feel the market is not attractive, then never mind ... no need to enter the market first. For example, the market conditions are sideways and you don't like sideways conditions, just hold on to enter the market. Wait for the breakout first.
5. Stop loss
Many friends, especially new traders, don't like Stop Loss, because they think this SL "accelerates" losses rather than "limiting" losses. In my opinion, that's not the fault of the SL ... but it's our fault in placing the SL. Trading without SL is sometimes tempting, because "as if" we never get the wrong position. But I need to remind you once again: be careful. If we trade without SL, then once we realize the wrong position, usually our account has collapsed.
6. Cut Loss If Needed
If we realize a position that is clearly misguided, do not hesitate to do cut loss. If you feel you are always hesitant or affectionate to do a cut loss, then go back to the previous suggestion: always use stop loss so that the automatic position is closed when it reaches a certain loss. 7. Never Stop Learning Never stop learning forex trading, both learning in theory, learning from mistakes and learning from experience. And don't forget, enjoy this learning process. Happy Ttrading Guyss!
