Cut your losses

[cozard007]

I believe that many traders will be wondering why some traders are successful, and while many are failing. It is true that more than 95% of traders are losing their money, while fragment less than 5% are adding more profits every time in the market. It has always being like that, and it will continue if traders do not take action.

The first thing to do if you want success is to have a preserving ways of the account. If the trading account is actively preserved, then I believe that you have a better opportunity and trading shots next time you trade. This is the main reason for the success of some traders, SURVIVAL!

CUTTING YOUR LOSSES: Almost all the traders I have known that fails in this market are having a trading system that is more than 75% winning. It means that they lose all their accounts, that is why they do not have the privilege to continue the task/challenge in the market any further.

And the only way to stop this is to limit the way you are losing in the market. If you can adopt the tight stop loss usage (By tight stop loss, I means having a stop loss of nothing more than 10-30pips) depending on the trading system you are using). This means that the account will be active all the time, and you will be active when there are opportunities that will favour you comes.

In other words, always place your stop loss, and let it be tight. Never allow your account to be free to drawdown, this is the way a trader have margin calls and have their accounts stopped at the same time, this is a careless act is the stop loss is more. And if the account is preserved, you will have success with time. HAPPY TRADING!

[snnaky]

[lang=ar]Yes, my friend - agree with you very much
There are traders do not care about how to maintain the account Although he good trader That's because it does not follow a pro-rata strategy
Must fit the lot size with the size of the money available in the account and also not to open more of a deal if the account is very small because the goal is not only profit but more importantly how to keep the first account as long as possible so that there will be opportunities for profit
And there it quickly lost the account is wrong[/lang]

[COMANG]

[lang=ar]Yes, my friend - agree with you very much
There are traders do not care about how to maintain the account Although he good trader That's because it does not follow a pro-rata strategy
Must fit the lot size with the size of the money available in the account and also not to open more of a deal if the account is very small because the goal is not only profit but more importantly how to keep the first account as long as possible so that there will be opportunities for profit
And there it quickly lost the account is wrong[/lang]

if we're concerned with the risk and use measurable risk in the trade I am sure this will make it easier to trade with cut loss because traders are not concerned with their risk management which are usually doing this trade with doubt and have a dilemma in setting cut loss in trade because it was already lost so much in the trade without considering the risk management before opening a trading position

[snnaky]

[lang=ar]Yes I agree with you in that many the trader loses and this has partly because
Non-technical study of the situation and good news
There is also an important reason is the lack of fit the size of the volume deals with the money in the account so you do not lose your speed in the opposite price
It's good that there will be out of the area if the deal were losing and not left to the loss of the biggest deals, or do a quick cooling and this reduces loss[/lang]

[cozard007]

[lang=ar]Yes, my friend - agree with you very much
There are traders do not care about how to maintain the account Although he good trader That's because it does not follow a pro-rata strategy
Must fit the lot size with the size of the money available in the account and also not to open more of a deal if the account is very small because the goal is not only profit but more importantly how to keep the first account as long as possible so that there will be opportunities for profit
And there it quickly lost the account is wrong[/lang]

Lack of care is the right word sir. Many traders will now be regretting it if they have gotten the margin call or stop out because of this. It is a wise saying that says 'prevention is better than cure'. If you cut your losses, you will have better chance to try your luck next times you are doing the trading, than losing recklessly at once.

[Hukam]

One thing you mentioned very nicely in your thread brother that is stop loss I think its one of the best key to avoid our losses in forex the use of stop loss help a trader to loose less in forex many trader's feel worry that without using stop loss they loose money in forex but this type of thinking can make trader emotional

[erespe]

Stop loss is a definite choice, if we want our account to survive. However, in determining the stop loss point, we must be careful in the calculation. Do not let the stop loss becomes easy touch points compared to take profit. Every trader should pay attention to this because it is often already placed a stop loss moved away because they are sure to be touched, it will certainly make the actual stop loss, lost its meaning.

[rinaji]

Very great idea ..., thank you for this topic, this is always needed by traders who are still difficult to develop, a proper understanding of forex trading, I like your quote... let it be tight of stop loss. I know this is an idea and a great work that earned by your personal experience. Can you explain more about "Almost all the traders I have known that fails in this market are having a trading system that is more than 75% winning....

[cozard007]

Very great idea ..., thank you for this topic, this is always needed by traders who are still difficult to develop, a proper understanding of forex trading, I like your quote... let it be tight of stop loss. I know this is an idea and a great work that earned by your personal experience. Can you explain more about "Almost all the traders I have known that fails in this market are having a trading system that is more than 75% winning....

I am glad you like this sir, What I actually discovered is the fact that many traders have great trading system, but they are still losing in the market. I believe that what is best to do is to have a good trading psychology and plans over the market. If you can take care of the losses earlier, it will never affect your account security.

[Abu Shaharia]

loss is a very common matter in forex trading business. to become success in forex trading business it is very important to accept loss. without accept loss it is not possible to earn profit from forex trading business.