The Perfect Art Of Losing In Forex Market?

Discussion in 'General Trading Discussion' started by Jack Smith, Sep 8, 2017.

  1. Jack Smith

    Jack Smith New Member

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    Most trader of Forex industry does not know how to lose properly in trading. Losing in Forex trading does not have to deal with your profit, but they can certainly have an impact on your capital. If you are not losing properly in Forex, you will see that you are going to blow up your account in no time. Traders who have been in this sector for a long time, they know that losing is part of learning this market. If you are not losing in trades and only winning, it is not normal. You may think it is always better to win all the trades in Forex when there are risks of losing money. But in Forex, you cannot learn if you are not losing. You will also not get the chance of developing your risks to rewards ratios if you are only winning. Losing is important not only to give you a chance for developing your strategy but also for your career. In our article, we are going to say why it is important that you lose like a pro trader in your trades.

    How do pro traders lose in the market?
    We know you will ask this question how pro traders in this investment sector lose their trades. They simply do not wait for the market to take their money and lose their profit. They have a very simple strategy which is very successful in saving their capital. The main difference between a professional trader in the United Kingdom and the average trader is they have their capital safe even when they are losing trades. If you want to become professional, you must have to master this quality of keeping your money in the account even with your loss. Most novice traders blow their entire trading account after few losing trades. On the contrary, the expert in the financial industry can withstand more than consecutive 10 loss without losing a significant amount of their trading capital. If you want to consider trading as your full time professional then you need to learn the advance art of money management.

    How to lose properly?

    The first thing that you need to follow to lose properly, is to trade high risks to reward ratios in your online trading account. If you are risking 2 dollars for making only 1 dollar, it is not a good strategy. You will soon find that your account is out of money because of your strategy. If you want to make money, you have to risks 1 dollar to make 2 dollars profit. In this way, you will see that you are making 10 dollars profit and losing 7 dollars and still you are keeping a profit from your trades in Forex. A good risk to reward ratio is important for losing properly in this financial market.

    Losing is inevitable
    No one in the investment sector wins every single trade. As a currency trader, you will always have to deal with your losing trade. Most of the novice traders can’t accept the losing trades in a normal way thus they get frustrated. They often execute big lot size trade to recover their loss and ultimately make lose more money. However, the professional traders are totally different from the new retail traders. They simply wait for the next possible trade setup and forget about their losing trade. You need to consider all your losing trades as your business cost. But make sure that you are using proper money management so that your loss never exceeds the size of your winning trade.
     

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