One of my favorite saying in Forex goes something along the lines of;
It is your job to manage the losers, if you can do that well the winners will take care of their selves.
Another is;
Amateurs think about how much they can gain and professionals think about how much they can lose.
If you control your risk - you have a much higher chance of doing well.
If you are wild with your risk, you will more than likely become just another statistic.
Food for the professionals.
The fish for the sharks.
I suggest you use a set percentage risk per trade.
I risk 2% per trade, it does not matter if my stop is 20 pips or 200 pips, the risk is the same, I adjust my lot size size to suit my sop size.
For example, if you have $1000 account and you want to risk 2% - You can risk $20.
If the stop is 200 pips, you can trade at 0.01.
If the stop is 20 pips, you can trade at 0.1.
This means as long as you trade 1:1 risk:reward ratio, you can breakeven if you can win 51% of trades.
That is actually not as easy as it may sound, but if you trade at a better than 1:1 ratio, you can lose over 50% of trades and still turn a profit.
You do not need to be Einstein, you do not need a crystal ball, or a magic "NO LOSS" EA.
You just need to be realistic with your goals and maintain good rules.
My favorite strategy let's me trade usually 2:1 risk:reward or some times slightly better.
Doing this lets me lose a whole ton of trades and still come out profitable if I can just win a few.
How do you prevent loss in Forex?
Accept there are going to be losses, haha, simple as that.
Just make sure you lose well, and the wins will take care of their selves.
Happy trading.
It is your job to manage the losers, if you can do that well the winners will take care of their selves.
Another is;
Amateurs think about how much they can gain and professionals think about how much they can lose.
If you control your risk - you have a much higher chance of doing well.
If you are wild with your risk, you will more than likely become just another statistic.
Food for the professionals.
The fish for the sharks.
I suggest you use a set percentage risk per trade.
I risk 2% per trade, it does not matter if my stop is 20 pips or 200 pips, the risk is the same, I adjust my lot size size to suit my sop size.
For example, if you have $1000 account and you want to risk 2% - You can risk $20.
If the stop is 200 pips, you can trade at 0.01.
If the stop is 20 pips, you can trade at 0.1.
This means as long as you trade 1:1 risk:reward ratio, you can breakeven if you can win 51% of trades.
That is actually not as easy as it may sound, but if you trade at a better than 1:1 ratio, you can lose over 50% of trades and still turn a profit.
You do not need to be Einstein, you do not need a crystal ball, or a magic "NO LOSS" EA.
You just need to be realistic with your goals and maintain good rules.
My favorite strategy let's me trade usually 2:1 risk:reward or some times slightly better.
Doing this lets me lose a whole ton of trades and still come out profitable if I can just win a few.
How do you prevent loss in Forex?
Accept there are going to be losses, haha, simple as that.
Just make sure you lose well, and the wins will take care of their selves.
Happy trading.
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