loss happens sometimes with no reason, so we the traders should take losses as an easy thingh, otherwise trading life could be the worst part.
Should we ignore loss in Forex Trading?
- Thread starter Coner1980
- Start date
I track my losses. Sometimes, it happens because of psychological issues, while other times they are because of my strategies. Find out why you are making losses before making any action.
No just as you shouldn't ignore winners and assume they were good trades.
i have never seen at any guy who can avoid losses completely after having good knowledge and experience.
Apparently I'm told the world has been at war 92% of the past 3,000yrs, if you assume the markets 92% of the time will cause you to lose money, and you focus on that then you will lose again as the dynamics to it are completely variable.
You need to focus on the losses of the 8% where you could have made profit, knowing the markets will do everything in their power to make sure you get sucked in to the 92% because once that happens, not just your profits, but your underlying capital are in play.
What is the definition of a loss, that is a loss in the 92% because you were too greedy or inexperienced to know the difference, a loss in the 8% can be a loss (you never learn), a learning curve (neutral), or a loss lead in to greater profits (difficult these days).
This last one is interesting as once the markets play their hand, interesting things happen like oil at $6 or GBPUSD flashing down to almost parity and then inverting 200% on that move, but today you need algos to track all this stuff as the things publicly available just don't cut it, maybe you can find a combination of 10 indicators that cross match to hit that 8%.
You need to focus on the losses of the 8% where you could have made profit, knowing the markets will do everything in their power to make sure you get sucked in to the 92% because once that happens, not just your profits, but your underlying capital are in play.
What is the definition of a loss, that is a loss in the 92% because you were too greedy or inexperienced to know the difference, a loss in the 8% can be a loss (you never learn), a learning curve (neutral), or a loss lead in to greater profits (difficult these days).
This last one is interesting as once the markets play their hand, interesting things happen like oil at $6 or GBPUSD flashing down to almost parity and then inverting 200% on that move, but today you need algos to track all this stuff as the things publicly available just don't cut it, maybe you can find a combination of 10 indicators that cross match to hit that 8%.
its a very nice detail with good information. happy trading