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  1. #1
    Rookie nsawork's Avatar
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    Smile Loss Control Techniques

    Loss Control Techniques

    Hello traders,

    I would like to share with you some of the Loss Control Techniques that i have known in my Forex Trading Experience of 4 years

    Some of you might already be aware of them but then it is necessary that i put them together in a concise and clear format so that all traders whether Newbie or Pro will be able to take the Full Benefits from it.


    Loss Control Techniques:

    1. Never trade without Stop Loss.

    2. Never trade in Ill-Liquid Market conditions ( Usually when Major Forex markets are closed).

    3. Never do Hedged Trades.

    4. Always use Take Profits in your trading.

    5. Never trade when you have no prior trade information.

    6. Avoid being Greedy.

    7. Never do Over Trading.

    8. Always read and try to understand the Markets before placing your orders.

    9. Avoid taking trading decisions in a hurry.

    10. Never trade when you are upset.

    11. Never do Gambling in your trades.

    12. Be confident when you have opened your orders.

    13. Always use Money Management in your trading.

    14. Try not to trade when you have just made a Loss.

    15. Always keep your Trading targets in mind.


    Still there may be conditions when you will get a Loss so it is quite natural. But if you will follow my above Guidelines then your Losses will actually start to come down and you will see that your Profits are Surging ahead

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  2. #11
    Rookie nsawork's Avatar
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    Quote Originally Posted by ngalapreceh View Post
    how much you're risking per trade? I use a 50 pip stop loss and take profit of 50 pips. but usually clear position in one day. because i'm trading using high impact news. I think the loss of control technique that is good. but I think you need to add on a commitment to risk and reward, so that trading account can survive for a long time
    The amount of risks that we are willing to take in our trading will actually depend on the Trading Targets that we have specified for us and then we will also be able to understand about the advantages of doing our trades with low risks. It is a known fact that when our losses will stay under control then we will be able to increase our trading based income easily.

    News trading is also being considered to be a risky thing because we usually see many traders doing such trades that will put their accounts at a greater risks for a loss

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    Quote Originally Posted by nsawork View Post
    Loss Control Techniques

    Hello traders,

    I would like to share with you some of the Loss Control Techniques that i have known in my Forex Trading Experience of 4 years

    Some of you might already be aware of them but then it is necessary that i put them together in a concise and clear format so that all traders whether Newbie or Pro will be able to take the Full Benefits from it.


    Loss Control Techniques:

    1. Never trade without Stop Loss.

    2. Never trade in Ill-Liquid Market conditions ( Usually when Major Forex markets are closed).

    3. Never do Hedged Trades.

    4. Always use Take Profits in your trading.

    5. Never trade when you have no prior trade information.

    6. Avoid being Greedy.

    7. Never do Over Trading.

    8. Always read and try to understand the Markets before placing your orders.

    9. Avoid taking trading decisions in a hurry.

    10. Never trade when you are upset.

    11. Never do Gambling in your trades.

    12. Be confident when you have opened your orders.

    13. Always use Money Management in your trading.

    14. Try not to trade when you have just made a Loss.

    15. Always keep your Trading targets in mind.


    Still there may be conditions when you will get a Loss so it is quite natural. But if you will follow my above Guidelines then your Losses will actually start to come down and you will see that your Profits are Surging ahead
    Hi Nsa!

    Glad to see you there too. You pointed out few very good techniques but! I must say that I am not comfortable with Point # 4 OR should I say I am partially agree on that point? lol

    The reason is that, TP is the limit and I don't like limits on profits. SL is a must-use tool and it will surely help us in not losing more than our plan. I don't use TP when I sit in front of open orders.

    When you are going out or somewhere and you think that the trade can go against you after touching to the certain level, then in that case, you can place your TP without any hesitation. Greed is curse also, but when you trade by being in front of your computer, then I guess you are there to manage your positions, right?

    Maybe the trade without TP could give you more profits than you think. Well, we all have different styles of trading and maybe it wouldn't suit others if it suits to me but I am a believer of "If I can do something, then it means other can do that thing too".

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  4. #13
    Rookie nsawork's Avatar
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    Quote Originally Posted by princewahaj View Post
    Hi Nsa!

    Glad to see you there too. You pointed out few very good techniques but! I must say that I am not comfortable with Point # 4 OR should I say I am partially agree on that point? lol

    The reason is that, TP is the limit and I don't like limits on profits. SL is a must-use tool and it will surely help us in not losing more than our plan. I don't use TP when I sit in front of open orders.

    When you are going out or somewhere and you think that the trade can go against you after touching to the certain level, then in that case, you can place your TP without any hesitation. Greed is curse also, but when you trade by being in front of your computer, then I guess you are there to manage your positions, right?

    Maybe the trade without TP could give you more profits than you think. Well, we all have different styles of trading and maybe it wouldn't suit others if it suits to me but I am a believer of "If I can do something, then it means other can do that thing too".
    Welcome Dear Brother

    Yes it is not that you have to follow all of them, as it actually depends on the Trading Strategy that we are using and also on the timings of our trades into the markets. We must never forget that when we are in any trade the amount of profits are directly related to the Market Actions that we take so we are actually responsible for them. If we are wise enough then we would try to follow what is beneficial to our own trading style.

    This is how you need to follow them and if you are a wise trader then soon you will start to see the benefits in your trading accounts

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    Quote Originally Posted by nsawork View Post
    Yes, you are right as it is because of the Trading Strategy that i am using does not work with Stop Loss. I am trading using Fundamentals and thus my trade would last for 1 to 3 days in general. During this time if i place a Stop Loss of 50 pips chances are that my trade will get closed in a Loss of 50 pips and then markets will reverse and had i not placed a Stop loss i would have gained in that trade.

    This is why i use a trading with very low risks so that in eventuality my trades will fail (about 20 to 30 %) the losses are small and limited
    This is quite an explanation and I appreciate it, how far is the result you have on the one without the stop loss sir? Well, no matter what I am doing in this market trading, what I know is that the stop loss is very vital, and even in the fundamental trading, the market tends to be very fast, and I think that traders needs stop loss with it still.

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    Quote Originally Posted by cozard007 View Post
    This is quite an explanation and I appreciate it, how far is the result you have on the one without the stop loss sir? Well, no matter what I am doing in this market trading, what I know is that the stop loss is very vital, and even in the fundamental trading, the market tends to be very fast, and I think that traders needs stop loss with it still.
    I also do some of the trades that are actually short term trades and in those trades i would prefer to make use of the Stop loss because this will also let me increase my Trading Basket at the same time. Here i mean that will deal into some of the New Currencies in which i am not doing regular trading and thus it becomes mandatory on my part to use Stop loss to remain safe.

    But still i would monitor the trades that i am doing and this will also let me earn a good income apart from doing my main trades

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    Quote Originally Posted by princewahaj View Post
    Glad to see you there too. You pointed out few very good techniques but! I must say that I am not comfortable with Point # 4 OR should I say I am partially agree on that point? lol

    The reason is that, TP is the limit and I don't like limits on profits. SL is a must-use tool and it will surely help us in not losing more than our plan. I don't use TP when I sit in front of open orders.

    When you are going out or somewhere and you think that the trade can go against you after touching to the certain level, then in that case, you can place your TP without any hesitation. Greed is curse also, but when you trade by being in front of your computer, then I guess you are there to manage your positions, right?

    Maybe the trade without TP could give you more profits than you think. Well, we all have different styles of trading and maybe it wouldn't suit others if it suits to me but I am a believer of "If I can do something, then it means other can do that thing too".
    It is a matter on what kind of strategy you are using, if its an intraday or scalping strategy then it would be best for trader to set fixed TP level, because price can swing to certain levels that can easily hit your target or stop loss level, for me not setting TP level are best suited for trend following strategy in the higher time frames to maximize our profits.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Quote Originally Posted by nsawork View Post
    Welcome Dear Brother

    Yes it is not that you have to follow all of them, as it actually depends on the Trading Strategy that we are using and also on the timings of our trades into the markets. We must never forget that when we are in any trade the amount of profits are directly related to the Market Actions that we take so we are actually responsible for them. If we are wise enough then we would try to follow what is beneficial to our own trading style.

    This is how you need to follow them and if you are a wise trader then soon you will start to see the benefits in your trading accounts
    Hey bro!

    Very true! I heard about most traders that they used to follow the line "Entry is not important, but exit is." I don't think this line has something to do with newbies because it is not the way to success. Your entry must be precise and then only you are going to get the chance, to close the trade in good profit otherwise, if you would leave the good entry point, then how exit could save you?

    People are taking wrong meaning of that line. Of-course, In my view, by saying that entry is not important, it simply means that you don't need to be stressed, and if you are good enough, you are going to judge if it is late or not! I highly agree with the line but I must say that only professionals and very few newbies understands it correctly.

    BTW, your tips were great. Keep up the best work.

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    Quote Originally Posted by princewahaj View Post
    Hey bro!

    Very true! I heard about most traders that they used to follow the line "Entry is not important, but exit is." I don't think this line has something to do with newbies because it is not the way to success. Your entry must be precise and then only you are going to get the chance, to close the trade in good profit otherwise, if you would leave the good entry point, then how exit could save you?

    People are taking wrong meaning of that line. Of-course, In my view, by saying that entry is not important, it simply means that you don't need to be stressed, and if you are good enough, you are going to judge if it is late or not! I highly agree with the line but I must say that only professionals and very few newbies understands it correctly.

    BTW, your tips were great. Keep up the best work.
    It is the timing of our trade that has more importance than anything else. When we will do our trades we should try to remember this fact that unless we are very sure about a trade it must not be done and we also need to remain careful when opening our orders in the Volatile Market conditions. Most of the times it is the bad decision making process on our part whereby we are not able to understand the real market trends that leads us into losses.

    And we should try to learn how we an control them and become a Successful Forex Trader

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    Quote Originally Posted by nsawork View Post
    It is the timing of our trade that has more importance than anything else. When we will do our trades we should try to remember this fact that unless we are very sure about a trade it must not be done and we also need to remain careful when opening our orders in the Volatile Market conditions. Most of the times it is the bad decision making process on our part whereby we are not able to understand the real market trends that leads us into losses.

    And we should try to learn how we an control them and become a Successful Forex Trader
    yes, we have to learn. I think the stop loss is the answer of loss control techniques. because the stop loss will limit the loss automatically. but traders should have a commitment to discipline the loss limits. do not change the stop loss level. so before trading, we already know the risks. we can accept the risk

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    Quote Originally Posted by ngalapreceh View Post
    yes, we have to learn. I think the stop loss is the answer of loss control techniques. because the stop loss will limit the loss automatically. but traders should have a commitment to discipline the loss limits. do not change the stop loss level. so before trading, we already know the risks. we can accept the risk
    This is one aspect that a trader must be discipline in following, but unfortunately most traders may disregard stop loss at certain point of his trading especially if he is coming from consecutive losing trades, if a trader is getting frustrated he becomes out of focus on things that he should be doing, trading is really a hard profession at it requires a lot a discipline and focus in order to succeed.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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