How do you reduce loss in forex trading?

[Bonyi]

I think you should do the following:
Don't open too many orders.
Don't be emotional to close profitable trades and leave unprofitable ones thinking it will reverse to your favour.
What is your opinion?

 

[barood4money]

There are many aspects to reduce loss at forex trading. Everybody should learn risk management and money management. Starting with basic things and low orders are the best idea to gain much experience.

 

[gkintl]

The only practical option available to reduce loss is the stop loss facility. Even though professionals suggest keeping the emotions away, it is practically not that easy for a beginner to follow. A lot of hands on trading experience and determination can only lead a trader to a professional level where emotions are set aside easily. Till then, it is always better to depend on stop loss facility to reduce loss.

 

[Daisy]

I know, you can learn and then practice and then practice some more and as soon as you open 1000 trades, your trades after that might be very strong. In forex, experiences is the best teacher. You will lose less as you move on but do take advantage of the demo as losing with fake money is so much better than losing with real money. You should not practice with real money. Try to open as many trades as you can in a demo and then you will surely gain profit. Also do long term trades as well to see how you will do.

 

[gkintl]

I know, you can learn and then practice and then practice some more and as soon as you open 1000 trades, your trades after that might be very strong. In forex, experiences is the best teacher. You will lose less as you move on but do take advantage of the demo as losing with fake money is so much better than losing with real money. You should not practice with real money. Try to open as many trades as you can in a demo and then you will surely gain profit. Also do long term trades as well to see how you will do.

A true assessment of our performance in the demo account needs to be done. Only then can a trader succeed in real account. Even though demo account uses only virtual money, a trader should trade as if real money is on the line. This would develop precision in entry and exit. Reducing loss is a systematic process. Only a discipline of mind will enable a trader to achieve the same. Once we start making consistent profit in a demo account with minimum draw down, a shift to real account can be done.

 

[Decub]

The only practical option available to reduce loss is the stop loss facility. Even though professionals suggest keeping the emotions away, it is practically not that easy for a beginner to follow. A lot of hands on trading experience and determination can only lead a trader to a professional level where emotions are set aside easily. Till then, it is always better to depend on stop loss facility to reduce loss.

Sure, the stop loss strategy is the most effective way to reduce losses. It is the traders safe tool when it comes to applying a risk limit. We also should endeavour to choose a lot size that is within the limits of our capital. Matching high lot sizes with low capital is a quick way to lose big.

 

[Daisy]

I say knowing will save you from losses right. You lose cause you didn't know. If you knew how to prevent losses, you wouldn't have made the moves that you did so a lack of knowledge and experiences will lead to losses so make sure you gain more knowledge, experiences and then you will gain more profit. The two are parallel. Also, not taking huge risk with your capital could be useful. The higher you risk the faster you lose.

 

[Decub]

And to that effect, knowledge becomes as important as trading itself. It is the trader who knows and understands how to trade and the strategies involved that can really manage losses. It is not enough to flip through websites in search of explanations that deals with understanding the basic principles involved in loss control but by doing some degree of practicing.

 

[Pettyeve]

We can reduce losses by using the Stop Loss tool. That is the function of setting the tool so that traders are saved from the effect of having some huge losses and subsequently getting an MC in the process. This is the main known function of the SL tool and provided we set it well, we are saved from having huge loss losses.

 

[amit.neogi]

There are many aspects to reduce loss at forex trading. Everybody should learn risk management and money management. Starting with basic things and low orders are the best idea to gain much experience.

first of all thanks for your suggestion but still i want know from you that for reducing loss in forex we need to learn risk management and money management at starting but if i want to learn in online then which site i have to visit for the same...

 

[Pettyeve]

first of all thanks for your suggestion but still i want know from you that for reducing loss in forex we need to learn risk management and money management at starting but if i want to learn in online then which site i have to visit for the same...

Risk and money management can be gotten from so many sites on the internet but if you can get files to download, you can always have a copy of it. It is in most cases, not a theory thing, you just have to implement them and you can do this with a demo account. It is about the right use of capital to lot sizes, setting the stop loss or take profit, etc. You can still try babypips.com or blogs through Google blog search. I into one someday but can't remember the site name.

 

[hasan87]

Lose is a part of any kinds of business. There is no difference in case of Forex trading business. A trader can easily reduce the risk of lose by utilizing proper knowledge abut Forex. He should not too risk to make money quickly and should not over trading. Another important thing that is a trader should have enough confident.

 

[Decub]

Risk and money management can be gotten from so many sites on the internet but if you can get files to download, you can always have a copy of it. It is in most cases, not a theory thing, you just have to implement them and you can do this with a demo account. It is about the right use of capital to lot sizes, setting the stop loss or take profit, etc. You can still try babypips.com or blogs through Google blog search. I into one someday but can't remember the site name.

Well, it is no longer news that the use of the SL is a veritable tool to prevent huge losses but where the problem is is in the placement. everyone would want to use this but not all knows how to implement it. It is just a cool thing that exists in the market and just as you have stated, it is only if you understand it that you can.

 

[sindarin]

First by defensive tools called Stop Loss, and second by offensive tools called indicators and analysis, with that i will try as the best as i can to reduce the loss that i will suffer later.

 

[willy]

all these problems like reduce loss and avoid margin call and trading with low risky can happened if we learn very well and trade with trusted strategy therefore we must test our strategy before trading with real account even the all world say it is the greatest strategy we must test it before remember this

 

[Pill Head]

The only way to reduce your loss, is through increasing your profit. As there is not a single way through which you could eradicate the loss, it is there and it will be there till the end. But instead of focusing on loss, if we concentrate on making more profit than the loss incurred, then we would be able to reduce our losses.

 

[raniya]

We must learn how to minimize the risk i n forex trading. Understanding market movement to get more profit here. Demo account also should be maximize as well as possible. I also still use demo account in FXB trading to get more experience and also I try to evaluate my trading. Try to not repeat my mistake in the future

 

[Irina]

To minimize the risk in any tranasksi in forex trading by way of analysis which have accurate and always put order buy or sel that has the width of a small stop loss

 

[Pill Head]

You need to learn about the Risk Management and the Money Management, properly, if you wanna become a successful trader. Also you need to learn properly about some analysis like technical and fundamental and lots more.

 

[Lee Mark]

I think you should do the following:
Don't open too many orders.
Don't be emotional to close profitable trades and leave unprofitable ones thinking it will reverse to your favour.
What is your opinion?

If you cut off your trading lose, then you can reduce your trading lots size! Besides, if you want to avoid any unexpected result then you should use stop loss trading tool, but concentrate on learning and learning.