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Are you loosing money in forex?

jhonix
Feb 26 2017 at 06:53
37 posts
Fear is a lousy companion for a Forex trader. Of course, FX traders fear losses. But losses are a part of the business. 😉

Samm
proyecto
Feb 27 2017 at 14:36
36 posts
manu1 posted:
snapdragon1970 posted:
You can check the trend on the longer period charts, if your familiar with the pair you will have a rough idea how much it is likely to pull back, if it has been bullish all morning its more likely that it will turn bearish soon, buyers have to be sellers at some stage, change of news or data, have certain levels been tested over a short period of time.


Doing this will free us from losses. But we are not exempt from it, one thing is to lose and another to LOSE EVERYTHING and to be left with nothing.


I agree with you that doing this will free us from the losses ...
Loss positions are unavoidable; In fact, it is usually harder to make money with strategies that try to ensure a very high rate of profit. This is simply the natural way of market movements.

jhonix
Feb 27 2017 at 19:45
37 posts
There are some traders who follow a methodology that attempts to greatly reduce or even completely eliminate losses. There are only two methodologies that can achieve this:

1. Add to a lossy position by believing you were right when you placed the original position and you were only wrong when you opened it. You can even add more in the next position to make recovery easier. The reality is that while this may work as a method, it is usually not optimal and we will generally have better results.

2. 'Change with the wind' and open a position in the opposite direction. This is not really 'avoid' a loss, it is actually crystallizing a loss by changing the net position.

phill
fellipefx
Feb 28 2017 at 07:59
20 posts
I believe that the amount to lose depends on the number of pips obtained, our size of contract and the commission of our Broker

Alessan
alessanFX
Mar 01 2017 at 07:48
10 posts
Why Forex Traders Are Losing Money?. For lack of risk management.

Since risk management is the key to survival. It can still be a very skilled operator and still be destroyed by poor risk management. Your job is not a number to make a profit, but to make sure you have what you have. Because your capital is small, the ability to make a profit may be lost.

Baldo (BaldoN)
Mar 02 2017 at 09:37
522 posts
jhonix posted:
There are some traders who follow a methodology that attempts to greatly reduce or even completely eliminate losses. There are only two methodologies that can achieve this:

1. Add to a lossy position by believing you were right when you placed the original position and you were only wrong when you opened it. You can even add more in the next position to make recovery easier. The reality is that while this may work as a method, it is usually not optimal and we will generally have better results.

2. 'Change with the wind' and open a position in the opposite direction. This is not really 'avoid' a loss, it is actually crystallizing a loss by changing the net position.


Hello,
In theory the strategy 1 may work if you have:
* really large account
* always start adding to position with mini / micro lot
* tested money management
* great control over you - to see most of the time the floating p/l in minus
* to know what exact symbol to trade (ranging would be perfect)

I believe too many IF's :)
In another forum, years ago there were a member trading on that way and his account survived 12 figures of movement. For me personally this is not my preferable way of trading, but everybody need to decide for himself.

Rebecca Pettersson (kerstin71)
Mar 04 2017 at 17:05
40 posts
90% traders are looser and 71% of their trades are profitable. So, they know very well how to trade. Problem is somewhere else.

1. They don't follow money management. (primary reason finds by DailyFX)

2. They do not think different. You have to think against what 90% people think.

3. Focus on losses not profit. Think how much you would loose if you take the trade first. and try to take less trade.

4. Master a strategy what focused on simplicity and price action.

Helping new traders
kieran (snapdragon1970)
Mar 04 2017 at 22:54
1945 posts
kerstin71 posted:
90% traders are looser and 71% of their trades are profitable. So, they know very well how to trade. Problem is somewhere else.

1. They don't follow money management. (primary reason finds by DailyFX)

2. They do not think different. You have to think against what 90% people think.

3. Focus on losses not profit. Think how much you would loose if you take the trade first. and try to take less trade.

4. Master a strategy what focused on simplicity and price action.


You should add to that ,false signals by the promotion of TA over load
No understanding of how the underlying market functions.

"They mistook leverage with genius".
vontogr (togr)
Mar 06 2017 at 10:13
4862 posts
kerstin71 posted:
90% traders are looser and 71% of their trades are profitable. So, they know very well how to trade. Problem is somewhere else.

1. They don't follow money management. (primary reason finds by DailyFX)

2. They do not think different. You have to think against what 90% people think.

3. Focus on losses not profit. Think how much you would loose if you take the trade first. and try to take less trade.

4. Master a strategy what focused on simplicity and price action.


Having 70% of trades profitable does not mean you make money,
e.g. tp $1, sl $10

ema123
Mar 20 2017 at 11:24
32 posts
Traders also lose money when they fail to recognize the opportunity and also are reluctant in exiting a bad trade which results in a blown account.

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