Losses is very important to Forex traders. Every forex trader experience losses, I do, you will if you are new, even the most experienced trader on the planet will have losses. The sooner you accept that and move on the better off you will be. You can’t beat yourself up over having a couple of losses.
Try not to look at them as losses, look at them as business expenses. They are just a part of doing business, nothing more nothing less. You could see a market that looks setup perfectly to make a move all the planets have aligned and sure enough you jump in and get your fill. Only to have the market turn the other way and take off like a Jack Rabbit, it happens far more often to us than most traders would like to admit. You can’t take losses personally, you can’t try to trade your way out of them and you can’t control it.
So just don’t beat yourself up, take your loss chalk up to a learning experience and move on.
Sometimes there isn’t even anything to learn. You made the right move everything looked good, the market just turned. It will do that more than you care to think about.
Golden Rules on losses In Forex Trade
Always place a stop-loss order, along with every entry order, to prevent any loss from sinking too far.
Study all your “bad” trades, because they are the most precious gifts on the way to proficiency in trading. Growing as an experienced trader is possible only after getting your losses in the beginning. Then sit down and carefully study the lessons they brought to you.
Never add to a position that is losing.
Keep your loss as small as possible.
One of the most important rules of Forex trading is to keep your losses as small as possible. With small Forex trading losses, you can outlast those times when the market moves against you, and be well positioned for when the trend turns around.
Never risk too much money more than you can afford loose.
All trades that you make should be of a size that almost seems pointless to your future fortune. If you are worried about the size of a trade then it is too big and you should use a lower amount immediately.
The best way to break a streak of consecutive losses is to not trade for a day.
Don’t stop trading when you’re on a winning streak.
You should not worry about a missed opportunity. There is always another one just around the corner.
Implement these golden rules on loss management in your forex trading exercises and you will be OK and will not develop forex hypertension