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  #1  
Old 06-28-2017, 07:31 AM
adamsmiths adamsmiths is offline
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Default Why you should learn the art of losing in forex

Most of the time, traders in the Forex market try to win every trades. It is not humanly possible. Even if you are a supercomputer and trading the market, you will need a human touch for your perfect trading. Losing is not the other side of success in Forex. It is a part of success in Forex. When you are trading the market, you have to keep in mind that you will always lose some trades. This is why the risk management of Forex has emerged. If the masters of Forex did not lose any trades, they would not say that you need to take risks and afford to lose money in forex. This market is volatile and your investment can be out of your account at any time. You can only learn to win the market when you have developed the mentality to accept you lose. To be honest in order to become a full-time professional trader you need to learn to lose. There is nothing wrong to accept managed loses in currency market rather itís the first step that you should learn to become a professional trader.

Lose to gain
Sometimes we need to lose something in order to gain something. It is called the opportunity cost in the principle of economics. If you decide that you will watch TV for one hour, you lost the opportunity for playing out on the field for one hour. If you want to gain a healthy body, you have to lose your weight. If you want to make money in Forex, you have to first lose in Forex. But as a trader, you need to manage the loss efficiently just like the expert traders. Itís very normal that you will get frustrated after facing few consecutive losses and start trading with a high lot to recover it. But the expert in the financial industry never tries to recover their losses rather they take the day off and consider it as their trading cost.

Managed loss
We do not say you have to lose big time in Forex. You can lose a small amount of money in your forex trading account and develop your strategy. You cannot know the market how it works if you never lose. If you lose some trades, you will know when the market can go wrong. You will avoid these times to trade in the market and as a result, you keep your profit in the account safe. If you do not lose any trades and you decide to trade for a big profit with leverage, what will happen to you if you have lost that trade? Your investment will be out and you will lose all of your capital. It can also bring a halt to your trading. So always follow proper money management in trading so that few consecutive loss doesnít hurt your trading capital.

Losing is just a part of the traderís career
You cannot win trades if you do not lose. When losing, focus and analysis why you are losing. Is it your mistakes or there were market movements which make your capital blow out? Is there anything wrong with your strategy? How can you trade the market for losing less money? All of these will answer to you when you accept losing in the market as your step to winning the market. Always assess your trade history since it will give you a clear insight and allow you to improve your trading strategy.
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  #2  
Old 07-27-2017, 06:17 PM
Freevestor Freevestor is offline
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Default Re: Why you should learn the art of losing in forex

This is why people should be automating their trades. Psychology gets thrown out the window. You don't have to think about winning and losing as far as your psyche is concerned, you think about making the right entry and exit given the market conditions.

When you said the below quoteyou're doing more harm than good in your advice because you're actually treating a live marketplace like it is a trip to the poker table...

Quote:
"You cannot win trades if you do not lose. When losing, focus and analysis why you are losing. Is it your mistakes or there were market movements which make your capital blow out? Is there anything wrong with your strategy? How can you trade the market for losing less money? All of these will answer to you when you accept losing in the market as your step to winning the market. Always assess your trade history since it will give you a clear insight and allow you to improve your trading strategy."
There's no set it and forget it system, it does not exist. When you build an algorithm, you are constantly in a software development process. Market environments change and while there are similar periods over time, there are market environments that are not necessarily conducive to the approach and this is why you have to go through the SDLC even when an algo is live.

You think the institutional banks are trading manually? Nope. Many are even arbing through triangular and latency arbitrage.

A major problem is that Forex traders trade one currency pair at a time and also think that the currency pair is a proxy for overall sentiment on the currency, which is UNTRUE. Traders need to create portfolios like investors and treat it as it is - a leveraged portfolio.
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Old 09-15-2017, 02:07 PM
Jeff51 Jeff51 is offline
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Default Re: Why you should learn the art of losing in forex

You are absolutely right, if you don't learn how to handle losing in forex you are pretty much screwed. It's a part of the game. Even the best forex traders who make millions of dollars lose, but they know how to lose. That is also very often the main difference between success and failure.
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Old 10-14-2017, 11:09 PM
John Tollerman John Tollerman is offline
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Default Re: Why you should learn the art of losing in forex

It is very much obvious that how we handle losses is what decides how well we go when it comes to profit making. I do it all rather sweetly thanks to MayTradingPortal, they have complete guide and help. They have taught me things that you can’t do even via paid courses. And, they allow it for all, so learn the Secrets on how to make $200 in just 1 hour for free https://www.maytradingportal.com/affiliates/affiliates/
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Old 10-25-2017, 12:42 AM
Mark100 Mark100 is offline
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Default Re: Why you should learn the art of losing in forex

I think you should start by constructing a trading plan. First you need to find out what type of trader you are, look into things like your behavioral, emotional, and personality traits. Are you a patient person, risk-averse, discipline etc.. You can determine, what types of time frames fit your personality.

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