Practical tips to minimize loses!
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    Registered user techboy's Avatar
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    Practical tips to minimize loses!

    I think some of these tips are valuable during actual trading,these are general in nature that may not be applicable to all trading conditions, if you have other tips to add please share in these thread.

    1. Never trade with correlated pairs at the same time - if you open a buy on EUR/USD never open a sell in USC/CHF, these two pair are highly correlated so if you lose with EUR/USD, you will suffer the same with the other one. Refer to a correlation chart.

    2. Avoid trading in a quite market - Signal generated in a quite market (more often Asian session) never progress as a trend or may reverse going to the London session most of the time, you may incur more losing trades during these time of day. Its better to stay away from the market than to have losing trades during these time.

    3. Never open a trade when a candle is not yet closed - at some point you see that price action is bullish or bearish and you open a trade but when candle close it is a reversal pattern and you are in the losing end.

    4. Use pending order instead of instant execution(unless you are a scalper) - if you are an intraday or swing trader better use pending order above or below your entry candle, we all know that there are a lot of fake moves in the market and we can avoid some of it by using pending order.

    I hope my tips are valuable to fellow members! Good Luck!

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    Registered user techboy's Avatar
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    Just an addition, one way to minimize our loss is to avoid trading too many pairs, almost all major and cross currencies are positively and negatively correlated with each other, so if other move down the other pairs will also move, if you trade all at the same time with these currency pairs any of the two scenario may happen, its either you win big or loss big, if you lose big it will hurt your equity very badly plus managing trades with so many pairs will be more stressful during trading.So it will be better to concentrate on just a few pairs to minimize the risk and have a more relaxed trading.

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    points no 1, you are right, they have strong correlation each others and move opposite each others. one will move up and the other move down, then if we have known hedging system, it is better to set buying for these pairs, then one is in floating minus and the others in positive, then we just need to wait for next correction to execute the other one after one pair reach the goals

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    I see that practice is one of the keys to gain in forex market,If you want gain you should open a demo account and practice the forex market in that demo account,In that demo account we should try to discover all our mistakes and try to recover it and all our weak points and try to convert it to strong points,I see the one who can exert the demo account well can gain well in that hard market,

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    yes the work should helps of trader as entering of the further on earning with the higher on confidence to run of the good stem with the requests as to complete of target with the decision on working of the trading jobs on arbitraging of the good resources with the market.
    to improves of the better challenge as decreasing of worse with the risks with the good returns on manage.

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    Quote Originally Posted by newentry View Post
    points no 1, you are right, they have strong correlation each others and move opposite each others. one will move up and the other move down, then if we have known hedging system, it is better to set buying for these pairs, then one is in floating minus and the others in positive, then we just need to wait for next correction to execute the other one after one pair reach the goals
    I understand such idea my friend, on paper hedging is good because we may profit when prices is going up and then again when it retrace back up we can profit again, but we have to be very careful on such approach because there are times that market will be in very strong trend leaving you in a very huge floating minus and you now have a problem of how to cut such loses. In my opinion it will be a lot safer if we just place a reasonable stop loss on our trades and just wait for another trade opportunity to come.

    Quote Originally Posted by alaa_22 View Post
    I see that practice is one of the keys to gain in forex market,If you want gain you should open a demo account and practice the forex market in that demo account,In that demo account we should try to discover all our mistakes and try to recover it and all our weak points and try to convert it to strong points,I see the one who can exert the demo account well can gain well in that hard market,
    Practicing in a demo is important for all traders, I just have to emphasize that prior to demo trading a trader must have first a very good understanding the basic and how the market move so that he is doing the right thing when trading in a demo account, but we should not rely so much also in demo, because we cannot really learn so much from it, it would be better to use a live account for practice to have the real feel of the market, just use a cents account to minimize you loses in case it gets blown up.

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    Last edited by techboy; 01-08-2015 at 11:31 PM.
    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Registered user techboy's Avatar
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    Here is another tip that can minimize loss and maximize our winnings in trading, if you use an intraday or swing trade strategy do not stick your eyes in your platform if you already have an open trade with all the parameters in place, you might get emotional when you see the price action of the market, thereby altering your trade or closing it early cutting off the full potential of the trade. So the best thing to do is close your platform and do other things then comeback after a few hours to see the progress of your trade, it is very important that we trust our system and let it operate according to its rule, in these way we can maximize our winning plus we can develop a habit of being a discipline trader.

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    in forex trading every point having important but the best point is learning, so when trader learn about every point and get adequate knowledge that more important so small lot size also best one in forex trading. Just dont use big lot size since market really can spike up and down. I also dont know why the fundamental analysis really give many shocking news everyday. and opposite result time to time. but that is the great of forex seem.

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    Registered user techboy's Avatar
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    Quote Originally Posted by ngalapreceh View Post
    in forex trading every point having important but the best point is learning, so when trader learn about every point and get adequate knowledge that more important so small lot size also best one in forex trading. Just dont use big lot size since market really can spike up and down. I also dont know why the fundamental analysis really give many shocking news everyday. and opposite result time to time. but that is the great of forex seem.
    Definitely my friend, learning is essential, an aspiring trader must not trade in these market less prepared, all the tips I presented here are to me a very valuable point that if traders take into consideration during trading it will help a lot in reducing risk, as regards to fundamental trading I can only say that these is a more risky trading approach that requires a lot of familiarization of execution, market can be very volatile during these time that can chopped your trade position easily.

    Have a nice day!

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    Really nice tips given by you, i would say that among those the most important ones is to never open the trade before the candle closing and also not to open the trades at random prices, instead one can always have the pending orders in place which is highly helpful for the traders to take up the trade at the most ideal entry level possible for making good gains and holding fewer floating loss.

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