To avoid losses while trading it is necessary to practice much on a demo account to be more confident. Without controlling your risks and considering money management rules traders lose their money.
Forex trading is a kind of intellectual brain activity. A trader who does not understand the Forex market principles and who trades on a live account without necessary experience in general losses his funds.
The main reason that they do not have a proper risk and money managements. This are a must in forex trading, without these two we can't stay much time in market by tarding. we should always keep some backup money which will save us when we loss all money which we invested in some particular trade. emotional managment will increase day by day while we are getting much experience in trading
You should also consider the emotions involved during trading. Emotions greatly affect traders when they are not being controlled. They eventually lose, you know.
Why a newbie starts losing trade, what are the measures which they must follow it up to be stable if not successful.
well to be in the safe side in trading- I think you should apply stop loss. stop loss can be a big saver in terms of saving ur money from going in loss, everytime you cannot be on ur own prediction to do the trade coz you can never know when the trend starts to dip in ur opposite direction, sl can be very usefull when you are not able to be in front of ur chart to analyse ur trade and also in terms of some problems like net not working or pc problem then sl can save you big time !
Separate your ego from trading. Making money is most important. Learn to accept mistakes and limit losses --- quickly.
Simple : because they first leap, and then say "hop". Majority think that it is enough to find an indicator or two or an EA or two (the kind that usually have the "get rich in two days" label on it) and that they are ready to go. Trading is a job like any other job : you have to learn it before you can do it well, and trading is not learned in a couple of hours
How to avoid losing huge amount
How to avoid losing a huge amount of money in trading, although it never happened to me, I just want to know how to avoid it so it won't happen to me and to all traders that will read this thread in the future? Thanks in advance
Most of the newbies are not curious in learning, they try to earn in quick sessions and become greedy. Without proper learning and guidance you can't earn from the market. Potential to learn, passions and judgement abilities are the key to success
found someone with the key to success first
bet accordingly, in trading floor , there are plenty of ticket pass around
when you enter into forex, you are getting some of those ticket in opposite direction anyway --so WHO's WON
read traders joking -- you could find the answer why you lost huge sum of money -- could be too much deposits, that simple
why most lose money
my view is a lot of trading methods don't follow trading principles. There can be many methods but there is only few trading principles that methods need to follow in order for traders to success.
1. Let your profit run - Most of the trading system in the internet take small profit and let loss run
2. Cut your loss - same as the above
3. Money management - how much the trade on a system strongly depend on frequency numbers of trades and the win and lose ratio.
good luck to all of you on trading!!