Should we ignore loss in Forex Trading?
- Thread starter Coner1980
- Start date
If you don't care where your money is going then it is not necessary to investigate. If that is indeed your mentality: please transfer your money to my bank account. It would be useless to bring it to the forex markets and having to wait whether you'll get it back or not. I will tell you that you've lost your money: certainty guaranteed.
In other words: if you want to learn what you are doing then you should investigate why you made a profit and why you made a loss. For each and every trade you place.
I would be worried a little, though loss is part of trading still figuring out what mistake you've made to occur that loss is important so that you do not repeat the same again.
And that is what every trader would do as well, but if your someone who can ignore the loss then get ready to lose more.
And that is what every trader would do as well, but if your someone who can ignore the loss then get ready to lose more.
loosing is unavoidable part of trading (HFT is one of rare exceptions, they almost always green at end of day). Think of it as inventory cost if you ran a business. The key is to make sure your method/system has positive expectancy. This is the key, without it, nothing else matters.
If you trade forex, you also have bucket shop issue. Look into currency futures on CME.
yep 97 % of forex brokers are no better than the mafia
Is there a way to understand why were you mistaken in some particular trade? I doubt that it is possible. I think it's fair to note that some of your winning trades could happen due to pure luck, should we investigate the underlying reason of success as well? But how do we do that?
In my view its better to focus on your performance on the distance of 50-100 trades because we can't make judgements about a trading system's edge based on some particular trades or small sample of trades. It is just statistically unsound approach.
Ofcorse you must find out why you made losses and identify the reason and try to improve on your weakness. Also, in the attempt one should not lose heart and consider losses as a part of trading. To cut down on losses one shouldn't hesitate to use Stop losses and good risk management techniques.