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Some losses are part of Forex trading but continuous losing is a bad indication

Discussion in 'General Trading Forum' started by PROPENSITY100, Apr 6, 2013.

  1. PROPENSITY100

    PROPENSITY100

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    Some losses can be good in Forex and can be used to learn and improve our trading skills and knowledge. However if one is losing money continuously then its a serious issue and dealt with wisely.

    If a person is continuously losing money and incurring debts then he should take it very seriously and analyse the causes behind the losses. Trading should be stopped and steps should be taken to rectify the errors and causes of losses. A trader in Forex should either improve his weaknesses or give up FOrex.
     
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  3. eddiej

    eddiej

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    I think on the first sign or a bad win/loss ratio, a trader should reassess his or her strategy or abandon it and find a better one altogether. I know it's hard for some people to change their strategies but hey, it's better than losing money.
     
  4. riddick09

    riddick09

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    If we are already facing a consecutive losses and we are always have losses rather than profits for a long time, this really shows that a trader will going to have difficulty in Forex trading and think that there are no improvements happening and thus, not capable to be trader.
     
  5. Daisy

    Daisy

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    If a trader is losing so much they should go back to a demo and test themselves out and also use a cent account to gain some real market live trading. However, they can reassess their skills since mistakes will lead to continuous loss. Making poor or slow decisions could lead to loss and not using stop loss or loss management or even knowing about the right time to trade can lead to losses.
     
  6. gkintl

    gkintl

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    Having a series of losses calls for detailed analysis of trades. In case the loss is due to a loop hole in the strategy, it is better to fix the error, go back to demo account and trade for a while to check whether the problem is resolved. After making sure that prior problem is resolved, a trader can shift to a real account. In case the loss is due to unexpected news then it is better to tighten stop loss price.
     
  7. Decub

    Decub

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    Yes, some losses are good part of learning as it helps you work upon your strategy and. develop a better one but even at that, we shall not continue in sin that grace may abide. There are times when the market becomes highly unpredictable that there seems to be little or nothing we can do to save the situation but at the same time, we have to always try to avoid serial losses because of its inherent consequencies.
     
  8. Daisy

    Daisy

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    If a person keep on losing, there are many explanation for this. One he open trades that might go bad and he knows it but do it anyways cause he's either a gambler, addicted to forex or is impulsive and can't control himself and he works full time in forex and needs money so he opens anything he can. He hopes to catch something but then end up losing. Impulsive trades are bad trades most of the time. I open trade only if there is a high chance that I will make money ad I do most of the time. If the trade keep on losing, he needs to open less trades, assess his mistakes and then correct what he needs to correct and move on.
     
  9. hasan87

    hasan87

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    There are no business without having risk of losing money. Lose and profit are the two important parts of the business. As Forex is also a business so there are hardly any trader who did not lose money in Forex business. But the amount of lose can be controlled by trading properly.
     
  10. Daisy

    Daisy

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    I think if the trader loses all the time he should sit down and assess his work. There must be something wrong in order for the person to keep on making errors. I mean there are many opp to make money so you should not lose all the time. A good trader can make profit in most of his trades. Sometimes the market make us lose but we should gain experience and control losses. Its part of the game.
     
  11. willy

    willy

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    yes you are right because losses means we did some mistakes and these mistakes is the best teacher for us in trading with real account even if we are good traders we must learn from our mistakes not neglect it at any way and to avoid all these the demo account an solve this problem just test your strategy to avoid the mistakes which you can do it in real account i do not say that we can trade with no loss no but reduce the loss as we can
     
  12. kasual

    kasual

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    Sure that loss is part of trading business. However, consecutive losses explain that there are something wrong in traders approach or in strategy. Probably traders make mistakes and they are do not realize it. Or strategy have weaknesses which make traders to open positions at the wrong timing. Well, no matter the reason, traders should conduct review as soon as possible.
     
  13. Pettyeve

    Pettyeve

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    That is true. Loss is part f trading but it is a bad thing. No body will like this part of trading to visit him or her while he or she is trading. When the trader is losing all the time, he or she should try and know what is the cause of the losing. Whereas traders will lose in forex, the losing will be bad when they are losing continously.
     
  14. Decub

    Decub

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    Who will even like to lose in the first place no matter how holly we want to claim that losses are. A particular loss can hurt you and even prevent you from learning how to correct it. One of the things I will always advocate for is that the trader try as much to minimize losses because there are those the effect is quite devastating.
     
  15. rosaleeupton

    rosaleeupton

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    I think if the trader loses all the time he ought to take a seat and evaluate his work. There must be something incorrectly all together for the individual to continue making mistakes. I mean there are numerous opp to profit so you ought not lose constantly. A decent trader can make benefit in a large portion of his trades. Some of the time the market influence us to lose however we should pick up involvement and control misfortunes. Its piece of the amusement. Keeping a journal is also very good idea.
     
  16. Tom Latham

    Tom Latham

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    You are absolutely right! Consistent SL means, you are not eligible for live trading, in this case, traders need to come back on demo again! By the way, lose is a general part of every business, so don’t be angry with my SL trades! But you have to draw your maximum level!
     
  17. lioneld

    lioneld

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    I agree with your opinion! Loss is a part of every sector of business! But, you have to know the way of money making! In this case, it’s too hard for being a consistent profitable Forex trader! By the way, when I face more than 3 SL’s in a day! I stop trading for that day.
     
  18. Lee Mark

    Lee Mark

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    Well, if you are trying to make 100% profit here; without any lose! That means; you are going to crash your full trading balance very soon! Because, it’s a part of business; no one can avoid it; whatever the skilled trader you are!