Thursday, January 25, 2018

Dealing with your trading loss in an efficient way

Dealing with your trading loss in an efficient way

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You will never find a single trader who hasnt face any losing trades. The structure of the Forex market is so unique that no can really understand the dynamics price movement of the financial asset. Its true that its a problem for the retail investors but the structure of this market always protect the price of the financial instrument from external manipulation. For this very reason, people all over the world prefer Forex trading as their alternative source of income. Many have started trading as their part-time profession but within a few months seeing the lucrative profit potential they are now considering trading as their prime source of income. If you can truly master the art of trading then you can easily secure your financial freedom in the world of economic crisis. But to do so you must have to work really hard to learn more about this market. Human beings are not designed to embrace loss. For this very reason, trading is so hard for the new traders. They become frustrated after facing a few losing trades. This frustration forces them to trade with big lot size but eventually, this makes the loss much bigger. In order to become a profitable trader you need to reprogram your mind or else it will be almost impossible for you to make a profit on a regular basis. Losing is nothing but the part of your trading career. You need to learn the art of losing. Even if you face a series of losing trades then you should be happy with your trade result. If you take stress to recover your trading loss then you are just going to lose money like the 95% of the traders.

Learn to lose properly
Instead of trying to avoid the losing trades you need to learn the art of losing. Every successful trader knows very well that they will often have to take consecutive losing orders. Its not like that they dont have done the proper market analysis. Its because of the market nature we cant predict the future price movement with 100% accuracy. For this very reason, the expert traders in the options trading industry often consider the money management as Holy Grail in the Forex market. If you simply risk 2% of your account capital in each trade then you will never blow your entire trading account.

Learn from the expert traders
The best way to learn the art of trading is to seek help from the expert traders. If you ever see the trading history of the successful traders then you will be able to understand how well they are trading this market. But the thing which will help you to boost your trading confidence is their losing trades. You will see that they have many losing trades. But they are always aiming for the high-risk-reward trade setup since it is one of the easiest ways to save their trading capital in the online market.

Develop a simple trading system
Most retail traders fail to embrace their trading loss since they rely on the complex trading system. They think that they have done all the hard work but why should they still lose money. As we have told earlier this market is free from manipulation and its not possible for the human beings to find the right trade 100% of the time. When you are losing money on a certain trade another trader is winning. So you need to understand that this market is all about probability and there is nothing we can do to win all the times. Try to learn price action trading system since it is one of the easiest ways to save the trading investment. If you focus on your trading result then you will see that even after losing more trades then you can make money by trading with the high risk-reward ratio.

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