how to control losses

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hi everyone i hope you are well,

‌

I have been trying to trade for a while now and although my success rate ranges 60% upwards I still tend to finish at a loss.  This is something everyone either has experienced in the past or still are experiencing.  I hope this topic would help many people with their trading success.

‌

The questions, h‌ow do you control your losses?  Where do you set your stop losses?  What makes you set your stop losses at a certain point?‌

C‌urrently I am using several indicators such as zig zag to look for trends and breakouts, Stochastic oscillator, MACD, RSI and various MA's.‌..

I‌ am still learning so I am trying to find the best indicators and combination of indicators aswell as what the best newsfeeds are to see what the market is doing.‌

‌

I‌ hope some of you can provide some answers or even point me/us in the right direction.

‌

m‌any thanks for your time and answers 

‌

 
Aidenboyd22:

hi everyone i hope you are well,

‌

I have been trying to trade for a while now and although my success rate ranges 60% upwards I still tend to finish at a loss.  This is something everyone either has experienced in the past or still are experiencing.  I hope this topic would help many people with their trading success.

‌

The questions, h‌ow do you control your losses?  Where do you set your stop losses?  What makes you set your stop losses at a certain point?‌

C‌urrently I am using several indicators such as zig zag to look for trends and breakouts, Stochastic oscillator, MACD, RSI and various MA's.‌..

I‌ am still learning so I am trying to find the best indicators and combination of indicators aswell as what the best newsfeeds are to see what the market is doing.‌

‌

I‌ hope some of you can provide some answers or even point me/us in the right direction.

‌

m‌any thanks for your time and answers 

‌

I use support & resistance, using fractals to show a swing point.  I set my stop behind the previous swing, two swings back is even better.  Your reward should be at least 1.5 times your risk - so if your stop is 50 pips, aim for 75 pips for take profit.  With a risk:reward ratio of 1:1.5 and a success rate of 50%, you mathematically must make a profit.  HTH  :-)
 
Pete:
I use support & resistance, using fractals to show a swing point.  I set my stop behind the previous swing, two swings back is even better.  Your reward should be at least 1.5 times your risk - so if your stop is 50 pips, aim for 75 pips for take profit.  With a risk:reward ratio of 1:1.5 and a success rate of 50%, you mathematically must make a profit.  HTH  :-)


thanks pete

‌i will look up fractals and see how to use them :)  how do you know when to take the profit?  do you just keep disciplined at take them when the required pips have been met?

 
Aidenboyd22:


thanks pete

‌i will look up fractals and see how to use them :)  how do you know when to take the profit?  do you just keep disciplined at take them when the required pips have been met?

The fractals will show you swing points, just use them as support & resistance.  Calculate your stop from that and calculate the take profit as 1.5 times the distance to the stop.  You may have to pull the profit down a little so you don't place it the other side of s&r, but you need to be close to 1.5.  Just set the tp on your order, then stand back and don't fiddle with it ;-)
 
There many ways to skin this cat.
1) set realistic sl and tp with relation to support and resistance.
2) trail your stops
3) use good r:r ratios like Pete said
4) plan all aspects of your trade before pulling the trigger
5) use your losses as a lesson to improve upon your strategy. 

Etc...
 
Aidenboyd22:

hi everyone i hope you are well,

‌

I have been trying to trade for a while now and although my success rate ranges 60% upwards I still tend to finish at a loss.  This is something everyone either has experienced in the past or still are experiencing.  I hope this topic would help many people with their trading success.

‌

The questions, h‌ow do you control your losses?  Where do you set your stop losses?  What makes you set your stop losses at a certain point?‌

C‌urrently I am using several indicators such as zig zag to look for trends and breakouts, Stochastic oscillator, MACD, RSI and various MA's.‌..

I‌ am still learning so I am trying to find the best indicators and combination of indicators aswell as what the best newsfeeds are to see what the market is doing.‌

‌

I‌ hope some of you can provide some answers or even point me/us in the right direction.

‌

m‌any thanks for your time and answers 

‌


Profit and loss are part of trade but facts telling only 10% peoples in success. What 10% peoples doing and they have success?

  • ‌Winner Trader means staying in profit more then 16 Months and facing draw down less then 25%. 
  • These winner traders actually earns average profit  around 5% or less a month.
  • T‌hey using lowest leverage 1:1  or 1:25
  • T‌hey holds long trades from 1 day to 60 days average (How they can hold long trades because they don't puts load on balance using less risk volume trade against balance)
  • T‌hey sets SL/TP  on weekly and daily chart base. 
  • Winner traders actually collects small profits and they don't waits for big turn. 
  • W‌inner traders actually copying simple banks strategy Supply and Demand.  
  • W‌inner Traders sometimes waits for long to open a trade. 
  • F‌or winner traders most difficult things is to set profit targets. 
  • W‌inner traders don't depends on news base trading, they only checks big events coming in a year like Brexit and they avoids to trade in big events. 
  • Successful traders don't depends on 1 broker they split capital with 3 to 4 brokers. 
  • In generally good starting balance for successful trading 10K USD.
  • Their average Money management .01 or micro lot against 2000 USD balance.  
  • Average successful traders gains experience after 3 years and their first 6 months always in loss. 

 

T‌ry these all and then come back with your results 

‌

 
Waseem Raza:


Profit and loss are part of trade but facts telling only 10% peoples in success. What 10% peoples doing and they have success?

  • ‌Winner Trader means staying in profit more then 16 Months and facing draw down less then 25%. 
  • These winner traders actually earns average profit  around 5% or less a month.
  • T‌hey using lowest leverage 1:1  or 1:25
  • T‌hey holds long trades from 1 day to 60 days average (How they can hold long trades because they don't puts load on balance using less risk volume trade against balance)
  • T‌hey sets SL/TP  on weekly and daily chart base. 
  • Winner traders actually collects small profits and they don't waits for big turn. 
  • W‌inner traders actually copying simple banks strategy Supply and Demand.  
  • W‌inner Traders sometimes waits for long to open a trade. 
  • F‌or winner traders most difficult things is to set profit targets. 
  • W‌inner traders don't depends on news base trading, they only checks big events coming in a year like Brexit and they avoids to trade in big events. 
  • Successful traders don't depends on 1 broker they split capital with 3 to 4 brokers. 
  • In generally good starting balance for successful trading 10K USD.
  • Their average Money management .01 or micro lot against 2000 USD balance.  
  • Average successful traders gains experience after 3 years and their first 6 months always in loss. 

 

T‌ry these all and then come back with your results 

‌


These are very very precious advices which new traders need time to absorb into their blood.  
 

You actually do not need to use to much indicators because they will conflict each other. Just pick 1 or 2 indicators, practising with them, get the real feeling and start very small lot-size 0.01 on the capital of 100 usd.

I‌ think you also need to pick 1,2 or 3 pairs only to look at.

‌‌If you trade D1 (determining the trend, direction), you can find the enter points in H1, H4, and always put the SL at the swing high/low + some pips.

‌‌

 
Pham Duy Duc:

You actually do not need to use to much indicators because they will conflict each other. Just pick 1 or 2 indicators, practising with them, get the real feeling and start very small lot-size 0.01 on the capital of 100 usd.

I‌ think you also need to pick 1,2 or 3 pairs only to look at.

‌‌If you trade D1 (determining the trend, direction), you can find the enter points in H1, H4, and always put the SL at the swing high/low + some pips.

‌‌


i have recently reduced the amount of indicators i use and looking for trends and breakouts more often now.  this is yielding some results.  i find the stoch and MACD tend to contradict eachother
 
Waseem Raza:


Profit and loss are part of trade but facts telling only 10% peoples in success. What 10% peoples doing and they have success?

  • ‌Winner Trader means staying in profit more then 16 Months and facing draw down less then 25%. 
  • These winner traders actually earns average profit  around 5% or less a month.
  • T‌hey using lowest leverage 1:1  or 1:25
  • T‌hey holds long trades from 1 day to 60 days average (How they can hold long trades because they don't puts load on balance using less risk volume trade against balance)
  • T‌hey sets SL/TP  on weekly and daily chart base. 
  • Winner traders actually collects small profits and they don't waits for big turn. 
  • W‌inner traders actually copying simple banks strategy Supply and Demand.  
  • W‌inner Traders sometimes waits for long to open a trade. 
  • F‌or winner traders most difficult things is to set profit targets. 
  • W‌inner traders don't depends on news base trading, they only checks big events coming in a year like Brexit and they avoids to trade in big events. 
  • Successful traders don't depends on 1 broker they split capital with 3 to 4 brokers. 
  • In generally good starting balance for successful trading 10K USD.
  • Their average Money management .01 or micro lot against 2000 USD balance.  
  • Average successful traders gains experience after 3 years and their first 6 months always in loss. 

 

T‌ry these all and then come back with your results 

‌


Many thanks Waseem Raza.  some very good tips there! much appreciated
 

 Losses occur.Most important part of loss is whether it is expected or unexpected lossess.

‌

Black swans like 9/11 OR SNB move catasthrophic.

‌To eliminate this reducing the levarage.OR closing the position at sleeping time.

To use shorter time frames entering and existing for ''1'' long term direction (short or long)‌.İt is the maximal PROFİT  and minimal LOSS

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