Stop loss still used many trader to manage the risk, and I think all trader also will learn how to put stop loss on safe area but still on risk consideration, might trader using support and resistance and using strategy pending order etc, but might some trader use hedging strategy to manage the risk
How do you handle your losses?
- Thread starter Rambo35
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We should try to minimize the losses in our trades and that could be easily done if we start using the stop loss settings at the correct levels. This will also allow us to get out of the trades that have the potential of giving us more losses
Using proper stop loss is not easy step for any trader because it take a lot more analysis to calculate a correct stop loss for the trade.
Indeed, might sometime we facing with dilemma when using stop loss, might we ever faced experience when price hit stop loss then price move to reached target and might we regret afterward, but this is for lesson and we can improved strategy to keep secure in trading but keep risk management plan
Developing risk management techniques are easy but to implement in real account with good mind is more difficult. At trading trading time, most trader lost their discipline and make mistake of no proper management.
Well talking about practical approach, best way to take losses it to cut them in small parts using tight SL. Psychologically it easier to take a row of small losses than one big slash from your capital. As trading is more about psychology you will make less trading mistakes if you accept small losses.
Indeed using tight stop loss will minimize risk to smallest number, but some trader might they having reason to giving more distance movement and put wider stop loss with hope will reached target first, and each trader having different level psychology, as trader free to manage their money with tight stop loss or large stop loss
Using calculated stop loss is a good way to cut off our losses but it does not help us every time. Some times our stop loss our not correct which can cause loss too.
years trading forex i have my share of loses with my hotforex account, i just reached a ppoint that i simply move on and forget about it, just let it go
Loss is good thing but if you dont have proper money management then you can face big loss so always have a good calculation of trade with perfect SL and TP can save your capital being loss.
Actually as trader won't to losing money in trading, but sometime loss also giving valuable lesson for us if we recognized mistake the cause of loss then learn from it, might it will make cautious for next day trading
No one want to lose money in any business, but the fact is that if we dont loose, then never learn from it. Actually mistakes are need of any business, they teach us so many important points which we can not learn from any book.
yes, we can learn from the loss that we get to be trading better again. Forex is a business that has a high risk, so it is not forever we will be able to profit continuously in this business
If we can recognized mistake the cause of loss, it will giving valauable lesson to making betterment skill trading, and will good if also created new rules to avoid same mistake repeated again because often trader repeated same mistake over again
Mistakes are something which always occurs in every business, but taking them as lesson is difficult for few people. Not every person is strong enough to start the fight again and hard work for the same.
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