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Apr 3
7.5 Enjoy Taking Small Losses

By looking at the heading of this article you will find it a bit odd. In fact it is odd because you never enjoy taking small forex trading losses and why I put this heading needs explanation that I would do. In business you are always looking for wins and profits, fortunes and success, the heading of this article with an emphasis on forex trading losses, more over asking you to take ?joy? from it, would seem out of mind thing. Therefore I ask you to bear with me, because there is much to understand and learn about forex trading losses. it will help you to know that how forex trading losses will bring positive change in your understanding of forex trading.
It is utmost necessary in case a trader is to become effective in profit making, he has to accept the fact that forex trading losses are an essential part of a trading life. The profits are not without the existence of risk. With risk there exists profit and loss, profit for someone is a loss for some one else. With risk there is going to be losses and profits in forex trading business. There is no trader who has not experienced losses in his forex trading business.
The difference between a professional trader and novice traders is the understanding and the acceptance of risk and losses. When a novice trader understands that losses will always occur, but the emotions are always for gains and when losses are handed out normally inhibits productive thought and as a result produces unreliable and performance are mostly not good.
If a novice trader wants to grow into professional trader, it is utmost important for him to accept losses as a step forward for success. Forex trading losses should be seen as that of training. Majority of the traders have spent much of their lives in education in one form or the other. Knowledge, intelligence and above all experience. In forex trading the cash is sometimes lost, but we still accept it as a very valuable and significant part of our journey towards betterment of living.
Insurance is more or less the same. Every where people are spending money buying insurance of various forms, such as home, life, personal property, cars, etc. For most of them, they actually hope they never have to see the benefit of insurance purchases, but what is more important is the knowledge that they are protected.
These are two life examples, where we happily consent the decline of our cash assets without an immediate acknowledgement of material assets. With our conscious mind, we are willing to share with our investment.
Forex trading losses need to be seen the same way. Losses should not come up with negative emotions, neither should wins come up with excitement and celebration, as these are not part of a professional trading. Losses as well as wins are all part of the forex trading.
The professional trader knows very well that losses are acceptable part of forex trading; they have to be well managed. To let losses to overcome wins is a recipe for disaster. A large number of novice traders hitherto to accept losses as a progressive part of forex trading, the fundamental reason normally stalk from poor management of trade. With excellent trade losses understanding equipped with risk management skills, the novice trader will soon be promoted to coveted position as one called it a professional.
The first and most important thing a novice trader must always keep in his mind is to keep the forex trading losses small. When a trader successfully found a comfort level with the method the trader has chosen for forex trading, more advance arrangement is needed to determine the action to take when the trade does not turn out as anticipated. This have to be done before the trade is on, the decision as to when and where to leave is frequently twisted by fright, and/or greed.
MONEY MANAGEMENT:
Money management is of paramount importance for forex trading. All wins can easily evaporate with a single losing trading. Strict money management need to be practiced if novice traders learn to take small forex trading losses.
There are many schools of thought that explains the application of money management for forex trading, and it is outside the scope of this article. However, suppose a trader has a good sense of forex trading technique to start with, an easy and effective way is offered here.
To find out the risk you have to take on any trade, divide your total account into 10 equal parts. Your risk amount will come out. It is best that you really observe your risk as close as possible to that amount. If your account is $10,000 your trade risk would be close to $1000. However, this does not suggest single contract, if your technique imply a $500 risk per contract, in this case you would trade two contracts. Without understanding the readers technique of forex trading, it would be impossible to prove details on how much to risk per contract. Using the common practice of never risking more than 10% of your account on any trade will give you plentiful chances to make a success.
STOP-LOSS:
To be a favorable part of forex trading it is utmost important to keep the forex trading losses small. A good salesman knows very well that a serious of “no” is vital to sustain in order to achieve “yes”. It is that “yes” that will detract all those previous “no” answers. Similarly a professional traders knows very well that at times a small forex trading losses will soon bring “win”. As long those forex trading losses remain small, that can be easily managed forex trading losses, the trader will benefit from it. Keeping this in mind forex trader should feel joy taking small forex trading losses because ultimately they will be wins. Every small loss should be seen as getting closer to that win.
In order to keep forex trading losses small, a stop loss order should at all times be placed once an order has been filled. It must never be taken away, not even to increase investment contact. The only time a stop loss should only be moved when trade is to follow, trapping gains based on well thought out plan. Always keep your forex trading losses small by always utilizing a stop loss order.
As you have read this article, hopefully you will now know how enjoyable small forex trading losses taking should be. Never allow the thought of getting near to that big win be a cause for disappointment and misery. Even a fresh salesperson has to go through a phase of mental modification, seeing at refusal as a positive thing instead of negative one. Same applies to novice trader.
Begin with systematic division of your account into risk amounts and stick to it. Utilize stop loss orders consistently, do not remove or modify them to upsurge risk contact. Keep forex trading losses small by keeping in mind that whenever you get one or more small forex trading losses you getting closer to a successful trade, from novice trader to a professional trader, the pleasure of taking small losses of forex trading.

By looking at the heading of this article you will find it a bit odd. In fact it is odd because you never enjoy taking small forex trading losses and why I put this heading needs explanation that I would do. In business you are always looking for wins and profits, fortunes and success, the heading of this article with an emphasis on forex trading losses, more over asking you to take ?joy? from it, would seem out of mind thing. Therefore I ask you to bear with me, because there is much to understand and learn about forex trading losses. it will help you to know that how forex trading losses will bring positive change in your understanding of forex trading.

It is utmost necessary in case a trader is to become effective in profit making, he has to accept the fact that forex trading losses are an essential part of a trading life. The profits are not without the existence of risk. With risk there exists profit and loss, profit for someone is a loss for some one else. With risk there is going to be losses and profits in forex trading business. There is no trader who has not experienced losses in his forex trading business.

The difference between a professional trader and novice traders is the understanding and the acceptance of risk and losses. When a novice trader understands that losses will always occur, but the emotions are always for gains and when losses are handed out normally inhibits productive thought and as a result produces unreliable and performance are mostly not good.

If a novice trader wants to grow into professional trader, it is utmost important for him to accept losses as a step forward for success. Forex trading losses should be seen as that of training. Majority of the traders have spent much of their lives in education in one form or the other. Knowledge, intelligence and above all experience. In forex trading the cash is sometimes lost, but we still accept it as a very valuable and significant part of our journey towards betterment of living.

Insurance is more or less the same. Every where people are spending money buying insurance of various forms, such as home, life, personal property, cars, etc. For most of them, they actually hope they never have to see the benefit of insurance purchases, but what is more important is the knowledge that they are protected.

These are two life examples, where we happily consent the decline of our cash assets without an immediate acknowledgement of material assets. With our conscious mind, we are willing to share with our investment.

Forex trading losses need to be seen the same way. Losses should not come up with negative emotions, neither should wins come up with excitement and celebration, as these are not part of a professional trading. Losses as well as wins are all part of the forex trading.

The professional trader knows very well that losses are acceptable part of forex trading; they have to be well managed. To let losses to overcome wins is a recipe for disaster. A large number of novice traders hitherto to accept losses as a progressive part of forex trading, the fundamental reason normally stalk from poor management of trade. With excellent trade losses understanding equipped with risk management skills, the novice trader will soon be promoted to coveted position as one called it a professional.

The first and most important thing a novice trader must always keep in his mind is to keep the forex trading losses small. When a trader successfully found a comfort level with the method the trader has chosen for forex trading, more advance arrangement is needed to determine the action to take when the trade does not turn out as anticipated. This have to be done before the trade is on, the decision as to when and where to leave is frequently twisted by fright, and/or greed.

 

MONEY MANAGEMENT:

Money management is of paramount importance for forex trading. All wins can easily evaporate with a single losing trading. Strict money management need to be practiced if novice traders learn to take small forex trading losses.

There are many schools of thought that explains the application of money management for forex trading, and it is outside the scope of this article. However, suppose a trader has a good sense of forex trading technique to start with, an easy and effective way is offered here.

To find out the risk you have to take on any trade, divide your total account into 10 equal parts. Your risk amount will come out. It is best that you really observe your risk as close as possible to that amount. If your account is $10,000 your trade risk would be close to $1000. However, this does not suggest single contract, if your technique imply a $500 risk per contract, in this case you would trade two contracts. Without understanding the readers technique of forex trading, it would be impossible to prove details on how much to risk per contract. Using the common practice of never risking more than 10% of your account on any trade will give you plentiful chances to make a success.

 

STOP-LOSS:

To be a favorable part of forex trading it is utmost important to keep the forex trading losses small. A good salesman knows very well that a serious of “no” is vital to sustain in order to achieve “yes”. It is that “yes” that will detract all those previous “no” answers. Similarly a professional traders knows very well that at times a small forex trading losses will soon bring “win”. As long those forex trading losses remain small, that can be easily managed forex trading losses, the trader will benefit from it. Keeping this in mind forex trader should feel joy taking small forex trading losses because ultimately they will be wins. Every small loss should be seen as getting closer to that win.

In order to keep forex trading losses small, a stop loss order should at all times be placed once an order has been filled. It must never be taken away, not even to increase investment contact. The only time a stop loss should only be moved when trade is to follow, trapping gains based on well thought out plan. Always keep your forex trading losses small by always utilizing a stop loss order.

As you have read this article, hopefully you will now know how enjoyable small forex trading losses taking should be. Never allow the thought of getting near to that big win be a cause for disappointment and misery. Even a fresh salesperson has to go through a phase of mental modification, seeing at refusal as a positive thing instead of negative one. Same applies to novice trader.

Begin with systematic division of your account into risk amounts and stick to it. Utilize stop loss orders consistently, do not remove or modify them to upsurge risk contact. Keep forex trading losses small by keeping in mind that whenever you get one or more small forex trading losses you getting closer to a successful trade, from novice trader to a professional trader, the pleasure of taking small losses of forex trading.

 


Risk & Money Management

 

7.1 When Currencies Move Against You

7.2 Focus On Risk Control

7.3 Stops Are Not Just For Roads!

7.4 Trading Safely

7.5 Enjoy Taking Small Losses

7.6 Trading A Small Account

 


Forex Education

 

The Basics of Currency Forex Trading

Technical Analysis

Technical Indicators

Fundamental Analysis

Intraday Trading

Emotional & Behavioral Part

Risk & Money Management

Trading Guide