Should we ignore loss in Forex Trading?

I would at least review your trade and see if you can determine if you made a mistake by taking that setup.

Also, if you have a charting program like NT, it can create a report including your win%. As long as you are within your back tested win %, you should not worry about losses since just like wins they are a part of trading.

Obviously, you do need to have a setup with an Edge. An Edge being a trade setup with positive expediency.
 
The sun cannot shine daily in forex so losses will happen. All you can do is analyze the reason for the loss and find out the mistakes that you have been making. This will help you in planning a better approach for your future trading and possibly would minimize the risk.
 
Nicolemaz said:
The sun cannot shine daily in forex so losses will happen. All you can do is analyze the reason for the loss and find out the mistakes that you have been making. This will help you in planning a better approach for your future trading and possibly would minimize the risk.
More...

This is a typical beginners response. Why would a loss be considered a mistake ??? Ask yourself this question and trade accordingly.
 
I think we should not ignore losses. We should accept these losses and learn from it. By analysing your past trades make your future trades better and profitable. Being emotional can destroy your trading. Look back and find your mistakes. Move on and work on your mistakes. I hope you get your desired results on your future trades.
 
In my opinion, you should not unequivocally ignore losses, they should be perceived as signals that somewhere you are doing something wrong.
 
Its essential to review losers to ensure that you followed your strategy. If you followed your strategy exactly, then you also need to review the markets from a wider perspective to ensure that your strategy still matches the current overall market conditions - really this should have been done before you entered the trade.

Assuming both these points are met, no further work needs to be done on losers.

However, there is always more potential reward from review work on the winners.
 
Ignore is something a trader should never do. Don't ignore losses, don't ignore profits, don't ignore anything.

For everything that happened (positive or negative) you should try to find an answer. So omitting things that have an impact on your performance makes your conclusion unsure.
 
You must log in or register to reply here.
Back
Top