How can exactly avoid the losses in Forex?

[Bugsy]

How can exactly avoid the losses in Forex? What are the reasons behind that most of the traders lose their money in just in their first few trades?

To be fair, it appears English may be a second language so allow me to pose what he was probably wanting to ask:

What strategies can I use to help me avoid losing trades in Forex? What are some winning strategies that successful traders use to profit in the Forex market?

 

[Turveyd]

There are actually traders who only close position when it is in profit.
and for those position that are in red, they don't close it. in this case, they don't suffer real loss (only paper loss).

Most traders will be better off that way for a while, until they have too many losing positions on the wrong side of a large move and it wipes them out.

Still last longer than death by a 1000cuts.

 

[traider]

HFT

 

[Turveyd]

Need to ask this question to someone on a yacht who's life is way better than ours, because if we knew we'd be living on a yacht and not posting here

 

[Trader H.C.]

The short answer is no, you can't.

Trading is a number game. There are wins, as well as losses. Just like a coin must have 2-sides.

However, profitable traders only trade on strategies that have an edge, where they can win more than they lose. Hence, they can win in the long-run.

 

[algoseek]

Let your wining trades run and cut your losses.
You can't avoid losses in trading. They are part of the costs of doing business.

 

[Turveyd]

Let your wining trades run and cut your losses.
You can't avoid losses in trading. They are part of the costs of doing business.

Yep!

Don't fall into the trap after a few losers in a row that you'll start taking out +5 while losing -20 cause of fear, cause then you'll get no where, risk 20 and try to hold for swings and make +50.

 

[Stephen Andrew]

i loss most of the time during news , its my weakness really , i trade from a long time in there but sometimes i feel i am like newcomer as knowledge.

 

[Bugsy]

i loss most of the time during news , its my weakness really , i trade from a long time in there but sometimes i feel i am like newcomer as knowledge.

Most of the time news is created based on the outcome of charts. The market dives suddenly and the news brings in an analyst who was previously bearish who 'explains' why the market dove. If the market suddenly went up they find an analyst who was previously bullish to 'explain' why it suddenly went up. There always seems to be a sudden bit of news to explain why it suddenly went up. Then a few hours later if it falls there is some magical news why it went back down.

Ironically, if you look at a stock chart, more often than not, it will also have been pushing a support or resistance right about the time it reversed. News more often than not follows price action on a chart, and not the other way around. All this to say you should focus more on the chart rather than any news. If it were actual news you can believe the chart will have already reflected it long before you heard about it on the news.

 

[BAT31]

How can exactly avoid the losses in Forex? What are the reasons behind that most of the traders lose their money in just in their first few trades?

1. Too much risk on.
2. Too under-capitalized.