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What is the best way to manage loosing trades?

andresforex
Nov 08 2017 at 07:27
12 posts
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)

arpan366
Nov 08 2017 at 15:39
31 posts
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
Nov 08 2017 at 15:40
920 posts
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.

CarlFooty
Nov 08 2017 at 15:54
11 posts
Decide in advance when you will close the trade and set a stop loss at that level

profijet
Nov 08 2017 at 16:34
134 posts
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.

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Adribaasmet
Nov 09 2017 at 15:47
920 posts
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.

Money Management
mmltd (mmltd)
Nov 10 2017 at 10:41
31 posts
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
Dec 17 2017 at 08:21
10 posts

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.

SevenSMA (SevenSMA)
Dec 17 2017 at 13:48
10 posts
Always have an exit strategy.

Live and Let Live...
mlawson71
Dec 17 2017 at 14:51
1487 posts
That is something one's trading plan should take into account. Different strategies require different approaches, there's no one universal answer to that question.

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