andresforex
Member Since Nov 13, 2015
12 posts
Nov 08 2017 at 07:27
Hello everyone,
I'm interested to know your recommendation on managing loosing trades, best way to close them to prevent further loses.
Would it make sense to close a loosing trade AS WELL AS any winning trade or trades that sum the equal amount of the loosing trade...
ie. LOSSING TRADE -$10.00. (close)
WINNING TRADE +$10.00 (close)
I'm interested to know your recommendation on managing loosing trades, best way to close them to prevent further loses.
Would it make sense to close a loosing trade AS WELL AS any winning trade or trades that sum the equal amount of the loosing trade...
ie. LOSSING TRADE -$10.00. (close)
WINNING TRADE +$10.00 (close)
My 2 cents would be to manage every trade independently unless the strategy uses multiple entries. Losing trades should always be closed at the predetermined stop level at worst (most good risk management systems would try to close losers quicker). Otherwise they have a tendency to snowball and eventually blow the account. Thanks.
Adribaasmet
Member Since Aug 27, 2017
920 posts
Nov 08 2017 at 15:40
If you have a good trading strategy then it would be easy to you! In this case, high profit ratio helps me a lot! Usually, I don’t open any trade which offers me below 1.5% profit ratio.
Decide in advance when you will close the trade and set a stop loss at that level
It depends on strategy and currency pairs. I enclose my testing on Parabolic SAR strategy, EURUSD. I get different results for different currency pairs. Values in screenshot are in USD.
Adribaasmet
Member Since Aug 27, 2017
920 posts
Nov 09 2017 at 15:47
Well, I use stop loss position thus I can avoid big losses in my trading! In addition, I follow tight money management as well as risk management policies in my trading.

Nov 10 2017 at 10:41
You should never open a trade without a plan. Not only you need a target, you also need to know when your entry is wrong and you have to get out. And I am not talking about a stop loss, you can exit manually. I call it emergency target.
raphaelcol
Member Since Dec 12, 2017
10 posts
Dec 17 2017 at 08:21
There are web pages, such as the National Securities Market Commission (CNMV) or the Spanish Stock Exchanges (BME), in which the basic keys to improve the world of investment in the stock market you can take a look for you Familiarize yourself with concepts as important as liquidity - easy to buy and sell an action.