Loss Control Techniques

[nsawork]

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

[Hukam]

Very good thread for all trader's specially for new trader's, Thanks for posting these fifteen points, I also think same like you mate ignoring stop loss is not good at all, and along with it over trading, over confidence, Gambling, Greed, these are also not good for our trading future and success. And for sure we need a good use of money management in trading.

[nsawork]

Very good thread for all trader's specially for new trader's, Thanks for posting these fifteen points, I also think same like you mate ignoring stop loss is not good at all, and along with it over trading, over confidence, Gambling, Greed, these are also not good for our trading future and success. And for sure we need a good use of money management in trading.

Yes this is important for us because we know that when we are doing our trades profits should come to us at any costs. Now since the risks are more we have to use these Loss Control Techniques so that our losses will get limited and we will actually start to benefit from our trading. When we will be able to keep our losses in control then our profits will increase.

And we are doing our trades only to get some income in our trading and we should try to stay away from the losses

[cozard007]

I am so surprised when I say this thread created by nsawork. In one of the issues we had tackled earlier on one of the threads on this forum, nsawork claimed that he is trading without stop loss, and now the first point is "Never trade without stop loss" I am a but curious about this contradicting part of is trading. Or you have forgotten this nsawork?

[nsawork]

I am so surprised when I say this thread created by nsawork. In one of the issues we had tackled earlier on one of the threads on this forum, nsawork claimed that he is trading without stop loss, and now the first point is "Never trade without stop loss" I am a but curious about this contradicting part of is trading. Or you have forgotten this nsawork?

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

[newentry]

11. Never do Gambling in your trades

i pay attention for this, sometimes , we do not realize that we used gambler style for trading, and it happened when traders start to predict the market price and try to catch the point ( bottom and top ). and they push to trade with just guess or bet, but sometimes we also let the feeling play the role during in the market

[samprazaan]

[lang=id]

Never do Hedged Trades.

i used this system to replace my stop loss and also i set the same risk when i set stop loss, so if i got problem and can not finish it with well, there is no problem because it was like stop loss itself, but of course, we have to understand how to do hedging until we know the right thing that have to do
please give some reasons that why we do not hedge trades., thank you::[/lang]

[ngalapreceh]

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

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

- - - Updated - - -

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

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

[nsawork]

[lang=id]
i used this system to replace my stop loss and also i set the same risk when i set stop loss, so if i got problem and can not finish it with well, there is no problem because it was like stop loss itself, but of course, we have to understand how to do hedging until we know the right thing that have to do
please give some reasons that why we do not hedge trades., thank you::[/lang]

Many traders who have no idea about what are the correct timings when they should open their Hedge and when they need to close it always find that doing Hedged trades actually doubles their losses because they get losses in their Hedged trades both ways. First on the Buy point and then on the Sell point and even if a trader would be able to manage his Buy order Profits with his Sell order losses still there would be no income for him.

This is why it is better to avoid doing Hedged trades unless you are having a prior successful trading experience with Hedged trades

[forexblaster]

I think that trading without stop loss will kill the account capital very soon, so in the light of this thing, the first point is right, I have also seen a lot of loses in my trading just because of not using stop loss, I suffer account blow up, because a trader can not trade 24 hours a day, and nobody knows that when will market fluctuate instantly and then blow up the accounts. As far as hedge trades concerned, it is not easy to hedge and open it, so it is better to stay away from this strategy.