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Thread: Our past trading performance should justify the capital we risk in trading

  1. #1
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    Our past trading performance should justify the capital we risk in trading

    I am opening this tread from my own experience and from the trading habits of some of the traders I personally know. So both critics and supports are welcomed for discussion.


    Beginners should insist on taking low risk
    : It is a fact that stable earnings cannot come to the trader right from the beginning or by spending a day or week in learning and trading. It is going to take time. And our beginning days in trading are bound to be filled with difficulties, struggle and even losses. Many beginners lose a lot of money in their beginning days of trading. So in my view a beginner should continue trading with small deposits only at least for one full year and focus on gaining all the knowledge and skills he can.

    Even experienced traders who are losing should trade with small deposits
    : We all know that experience is a great teaches. It teaches us several lessons and greatly helps in setting us right and straightening our crooked ways of trading. But all this does not mean all experienced traders are earning good income with Forex. There are a lot of traders who have years of experience and yet continue losing money. Such traders always take maximum possible risk to recover their losses but that is wrong. Unless we have profitable trading history we should never insist on trading with a larger capital. They can even postpone their recovery and first focus on betterment of their trading.

    Traders with profitable trading history can think of increasing their trading capital and trade with larger deposits
    When a trader reviews and finds that he has a profitable trading history of one or more years then he can increase his trading capital and risk he takes accordingly. So it is our performance and not our urge for recovery of our losses that should motivate us to increase our trading capital. Confidence automatically nurtures when our performance improves. If losers increase their trading capital then that will only increase their losses and not profits.

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  2. #201
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    Risk management is vital to trading. Each trader makes losing exchanges now and again. In any case, great traders respect and deal with their risks. You should have the option to deal with your risk and cut losses so you can keep on trading. Overseeing risk additionally means ensuring your capital. It's imperative to not give a terrible exchange a chance to deplete your account. There are a few different ways to shield your exchanges from startling changes in the market.

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  3. #202
    Trader J_C_Anderson's Avatar
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    It is a quite popular idea that past performance does not guarantee the same results in future, and it works both for traders and their strategies. Traders often say that if the strategy was profitable for some time in the past, it doesn`t mean that it would be profitable in future. At the same time, we actually rely on past performance and experience almost in any sphere of our activity. That is why the information could be very useful if we would like to make reasonable assumptions on future performance of the strategy. One of the most efficientways to evaluate the performance of the strategy is to backtest it using special software. Backtesting would help trader to understand whether the strategy would be profitable in long term perspective. It could be also useful to check the performance of the trader - if his actual results differ substantially for those obtained through backtesting, trader should analyse his trading process and search for possible mistakes that lead to underperformance which in most of the cases is just a result of impact caused by trading psychology.

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  4. #203
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    Quote Originally Posted by shivanandfx View Post
    I am opening this tread from my own experience and from the trading habits of some of the traders I personally know. So both critics and supports are welcomed for discussion.


    Beginners should insist on taking low risk
    : It is a fact that stable earnings cannot come to the trader right from the beginning or by spending a day or week in learning and trading. It is going to take time. And our beginning days in trading are bound to be filled with difficulties, struggle and even losses. Many beginners lose a lot of money in their beginning days of trading. So in my view a beginner should continue trading with small deposits only at least for one full year and focus on gaining all the knowledge and skills he can.

    Even experienced traders who are losing should trade with small deposits
    : We all know that experience is a great teaches. It teaches us several lessons and greatly helps in setting us right and straightening our crooked ways of trading. But all this does not mean all experienced traders are earning good income with Forex. There are a lot of traders who have years of experience and yet continue losing money. Such traders always take maximum possible risk to recover their losses but that is wrong. Unless we have profitable trading history we should never insist on trading with a larger capital. They can even postpone their recovery and first focus on betterment of their trading.

    Traders with profitable trading history can think of increasing their trading capital and trade with larger deposits
    When a trader reviews and finds that he has a profitable trading history of one or more years then he can increase his trading capital and risk he takes accordingly. So it is our performance and not our urge for recovery of our losses that should motivate us to increase our trading capital. Confidence automatically nurtures when our performance improves. If losers increase their trading capital then that will only increase their losses and not profits.
    Hello miss siva..
    good morning , how are you today? Are you profits today??
    If traders want to create the safe trading so they need to know the trading risk.They are at risk of loss because the market can move without they know.Many traders start the wrong trading because simply lack of confidence.They trade the wrong market at that time they can trade again with the other pair which is sure and trending.I think trading must see about the market justification of the losing and winning trades.

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  5. #204
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    Quote Originally Posted by shivanandfx View Post
    I am opening this tread from my own experience and from the trading habits of some of the traders I personally know. So both critics and supports are welcomed for discussion.


    Beginners should insist on taking low risk
    : It is a fact that stable earnings cannot come to the trader right from the beginning or by spending a day or week in learning and trading. It is going to take time. And our beginning days in trading are bound to be filled with difficulties, struggle and even losses. Many beginners lose a lot of money in their beginning days of trading. So in my view a beginner should continue trading with small deposits only at least for one full year and focus on gaining all the knowledge and skills he can.

    Even experienced traders who are losing should trade with small deposits
    : We all know that experience is a great teaches. It teaches us several lessons and greatly helps in setting us right and straightening our crooked ways of trading. But all this does not mean all experienced traders are earning good income with Forex. There are a lot of traders who have years of experience and yet continue losing money. Such traders always take maximum possible risk to recover their losses but that is wrong. Unless we have profitable trading history we should never insist on trading with a larger capital. They can even postpone their recovery and first focus on betterment of their trading.

    Traders with profitable trading history can think of increasing their trading capital and trade with larger deposits
    When a trader reviews and finds that he has a profitable trading history of one or more years then he can increase his trading capital and risk he takes accordingly. So it is our performance and not our urge for recovery of our losses that should motivate us to increase our trading capital. Confidence automatically nurtures when our performance improves. If losers increase their trading capital then that will only increase their losses and not profits.
    Helo brother shivanandfx ..
    good morning , how are you today bro? i hope u fine ..
    i think forex trading business contain risk and profit both and its very important for trader to calculate that properly, first of all we have to check that we have to only invest that amount of money in forex market which we can afford to lose in this market. I have seen many time that people take loan, and due from from bank and people and start their journey in this market but for newbies its not very easy to achieve success in a very short term time.

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