Forex Trading

Forex and ways to control losses that occur during trading



Emotions enter while trading :

One of the most wrong things is when entering emotions while trading in the Forex market.

Although new traders are successful in using demo trading, they make virtual money.

However, when they start real trading, they face failure, so what is the problem that these traders face?

The answer to this question is that these new traders are dominated by emotions and emotions during trading.

When a loss occurs to new traders in circulation, feelings of fear dominate the rest of their trading.

Also, achieving quick wins leads to a loss of control over themselves and turns trading into something similar to gambling.

One of the things that also leads to the loss is the excessive opening of deals.


How to overcome risks in the Forex market ?

In this article, we will explain the methods that protect you from the occurrence of risks.

If the risks occur during trading, it is not necessarily your fault.

Even if the market is the cause of this loss, we cannot blame it.

Until we clarify things further, trading does not have a specific system that you can abide by.

When you continue to use the trading system in the market, you will face loss at some point.

The loss can occur without changing your current trading system.

When a trader enters the Forex market, he does not rely on a one-time gain or loss.

Rather, it depends on the rate of loss and the risk-to-return ratios.

Therefore, if there is a loss with you during trading, do not blame yourself, because the loss in trading is something that must happen.


The rate of risk in the Forex market :

And in your winning trades if losses occur, then you have to check the risk to reward ratio.

If the value of the loss in each transaction reaches less than a third that you earn from a single transaction.

It means that the trading system you use can achieve success even if part of the loss occurs at about 65% of the total deals.

If the risk to return ratio does not occur, the compensation for the loss-to-profit ratio will not be compensated.

You also do not need to blame yourself or the Forex market or trading system.

It may be that the reason for the loss is that the current system is not appropriate to the current conditions in the market in which you are trading.

The market is constantly changing and for this reason, you will find that successful systems have failed, due to changing market conditions.

You have to change the system you use and keep trying until you are successful.

Previous post
The currency market and the importance of time frames for Forex traders
Next post
Forex helps you make a lot of money in trading

Leave a Reply