BUY FXO Forum Shares
1316
Shares in the BANK:
We BuyWe Sell
$1.8938$1.9524
Results 1 to 4 of 4

Thread: Fx Tips To Avoid Loss

  1. #1
    Bullish
    Join Date
    Aug 2007
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Fx Tips To Avoid Loss

    Always think in terms of probabilities. Trading is all about thinking in probabilities NOT certainties. You can make all the right decisions and the trade still goes against you. This does not make it a wrong trade, just one of the many trades you will take which, through probability, are on the loosing side of your trading plan. Dont expect not to have negative trades - they are a necessary part of the plan and cannot be avoided.

    . The place to start your market analysis is always by determining the general trend of the market.

    . Trade only with a strategy that you've proven to yourself.

    . When pyramiding (adding positions), follow these guidelines. a. Each successive layer should be smaller than before.
    b. Add only to winning positions.
    c. Never add to a losing position. One of the few trade management rules that we can state we never break is Never add to a losing trade. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If indeed it is a winner disguised as a loser, why not wait until it shows its true colors (and becomes a
    d. winner)before you add to it. If you do this you will notice that nearly always the trade ends up hitting your stop loss and does not look back. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very fortunate. Sometimes the trade hits your stop loss and then turns around and becomes a winner and you can count yourself unlucky. Whatever the result, it is never worth adding to a loser, hoping that it will become a winner. The odds of success are just too low to risk more capital in addition to the initial risk.
    e. Adjust protective stops to the breakeven point.

    . Risk Control
    A)Never risk more than 3-4 percent of your capital on any trade
    B)Predetermine your exit point before you get into a trade
    c)If you lose a certain predetermined amount of your starting capital, stop trading, analyze what went wrong, and wait until you feel confident before you begin trading

    . Dont trade scared money. No one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and leads quickly to disaster. Trading is about taking a reasonable risk in order to achieve a good reward. The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.

    . Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful forex trading
    . Never meet a margin call; dont throw good money after bad.

    . Close out losing positions before the winning ones,

    . Except for very short term trading, make decisions away from the market, preferably when the markets are closed.

  2. #2
    In Profit
    Join Date
    Aug 2007
    Posts
    112
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    It's sound good theory..but the practice it's can not make a big profit.

  3. #3
    In Profit
    Join Date
    Aug 2007
    Posts
    132
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    [QUOTE=noor76;31659]

    .never risk 3-4 cent its teory. not in live trade i thinkssm_win
    Me Just Newbie Who Try To Learn..

  4. #4
    Director of FXOpen Aus FXOjafar's Avatar
    Join Date
    Apr 2007
    Location
    Sydney
    Posts
    3,323
    FXO Shares
    50
    FXO Bonus
    1.463
    Thanks
    2
    Thanked 79 Times in 51 Posts

    Default

    Closing this thread. All it seems to attract is useless single line postbuilding.
    Jafar Calley - Director
    FXOpen AU Pty Ltd
    Level 26 • 1 Bligh Street
    Sydney NSW 2000
    Australia
    AFSL:412871 ABN:61 143 678 719
    http://www.fxopenaus.com

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer
2005-2017 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning:: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen does not provide services for United States residents.

Join us