How much you want to lose before want to recover the loss?
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Thread: How much you want to lose before want to recover the loss?

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    How much you want to lose before want to recover the loss?

    We know forex is risky and we can lose many in quick time too if we don't take proper protection for our account. But you need to decide how much you want to lose before you want to recover your loses. I know you know about it but did not gone though the mathematics and graphs. I bring it for you.

    When you lose about 1% of your equity 1% recovery is good enough to get back to your original equity. When you lose around 2%, 3% or even 5% of your equity then you just need about that amount to recover your loss. But when you have lost 10% then you just need to make more 1.11% to recover loss.


    Situation start to go bad when you lose 15% or more. You can find if you lose 50% of equity then you need to make 100% profit to get to your original equity.


    You just can't come out of the grip of losses when you lose more than 50% of your equity. And it become a Herculean task when you lose 75% or 80% or more.


    So just think, think it well how much lose in a trade is good for your recovery. And now think, will you use money management in your trade or not?

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    after a loss, usually traders will revenge to restore the loss. they will use a large lot size, using averaging, martingale, etc. it is a way of trading is very risky. I think traders should have a good risk and reward. minimum ratio of 1: 1. so the trading account will survive in a very long time

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    It is very important to note that a trader must have a good and battle tested strategy to use before he start trading real money, discipline in following his trading rule is also very important aspect, I say this because if a trader dont possess the things I mentioned above it will be impossible for him to succeed, but in reality there are a lot of trader that trade right away in the market with real money that are not yet ready emotionally and so he just waste precious resources along the way, so no matter what he does he cannot recover the loses he accumulated over the years. Another thing most traders increase lot sizes during trading just to recover his loses which again a wrong approach, if your trading strategy is not giving you profits so what make you think that you can recover your loses if you increase your lot sizes? Trading is a very tough profession I hope most traders realize it. Talking about everything is easy but doing in actual trading conditions is another thing.

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

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    [lang=id]i never thought for how much loses i have to take, but i just think for how to reduce them and because i knew that forex gave me two condition where we face unlimited risk and unlimited profit, and all the thing depend to us who manage it, but money management and risk management is very important to limit loses[/lang]

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    Quote Originally Posted by ngalapreceh View Post
    after a loss, usually traders will revenge to restore the loss. they will use a large lot size, using averaging, martingale, etc. it is a way of trading is very risky. I think traders should have a good risk and reward. minimum ratio of 1: 1. so the trading account will survive in a very long time
    Nobody want to take loss in trades. But we had to. And really it is seen when we lose some money in trading we try to recover that soon taking even higher risk with bigger lot trades. Interestingly the trades opened after a few lose generally don't come from our analysis rather it comes from our emotions. And you will find you have lost the risky trades too. So better we make sure we don't lose too much in a trade. Because the more you lose the more risky it become to recover.

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    It is not specific my brother, the traders should not say this or that is what he or she want to lose before trying to do what us good to recover himself. From the onset, the trader should try to know good purpose of trading with good strategy and way to manage the strategy too, this is what the trader should focus upon, nothing else on this.

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    Quote Originally Posted by silverlady View Post
    It is not specific my brother, the traders should not say this or that is what he or she want to lose before trying to do what us good to recover himself. From the onset, the trader should try to know good purpose of trading with good strategy and way to manage the strategy too, this is what the trader should focus upon, nothing else on this.
    yes, for this part, there is no specific measuring for it, no matter for how much losing we have done and made and as long as can make profit is always bigger than losing, so we are in profit, no matter for how many times we got MC and stop out, but if profit is always bigger than losing so we are in good position,
    and also forex is about unlimited results, for losing and winning

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    Quote Originally Posted by newentry View Post
    yes, for this part, there is no specific measuring for it, no matter for how much losing we have done and made and as long as can make profit is always bigger than losing, so we are in profit, no matter for how many times we got MC and stop out, but if profit is always bigger than losing so we are in good position,
    and also forex is about unlimited results, for losing and winning
    If you have a look again to my thread you can I have tried to give a message to all traders. That is simple and easy. Just don't lose too much of your equity in a single trade. If you lose too many it would be really hard to come back. Of course our goal is to make a lot of money and win more than we lose. But if you lose too many you just surrender most of time allow the market to wipe your account. You need to be proactive so that you don't lose it all. That is the message and I want to inspire you all to use money management in your account.

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    Quote Originally Posted by nkhan2810 View Post
    If you have a look again to my thread you can I have tried to give a message to all traders. That is simple and easy. Just don't lose too much of your equity in a single trade. If you lose too many it would be really hard to come back. Of course our goal is to make a lot of money and win more than we lose. But if you lose too many you just surrender most of time allow the market to wipe your account. You need to be proactive so that you don't lose it all. That is the message and I want to inspire you all to use money management in your account.
    It is good to be prudent in this market, losing much money would not be good at all. I is very better to know how the trading will be specified on the daily basis, and managing the account very well. If you want the worse, then lose more than you can control before you are thinking of the recovery, it is wrong in that's sense.

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    Quote Originally Posted by nkhan2810 View Post
    If you have a look again to my thread you can I have tried to give a message to all traders. That is simple and easy. Just don't lose too much of your equity in a single trade. If you lose too many it would be really hard to come back. Of course our goal is to make a lot of money and win more than we lose. But if you lose too many you just surrender most of time allow the market to wipe your account. You need to be proactive so that you don't lose it all. That is the message and I want to inspire you all to use money management in your account.
    yes, i agreed with you, and i just make a comment to silverlady, and i do follow your words above, we have to minimize our loses or limit it then we can keep good our equity as the power or chances for trading better, and it means, we need to be careful for making decision and respect for every points that we have made

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