How to minimize your losses? - page 3
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I prefer to use stop loss to minimize and avoid lose in trading.
This is mostly important when we are unsure of how the market would turn out!
I would say stop lose and trailing stop are the major tactic to minimize risk in the forex market, you would set your stop lose about 10 points away and should be below the market price when going for long position, the same applies in short position and should above the market price.
I agree with you, in order to minimize loss, we must understand the risks of forex. So that we could risk management do well, so loss can be minimized. One way with install SL. That way, even greater loss again we can minimalized.
Good posts all round!
Risk awareness is necessary to minimize loss without it we can not manage it. When we know how much amount is being used in each trade we can analyse it is possible to have loss or profit. It is better to do trading in low margin to limit our loss in low risks. regular trading will make us good in risk minimization.
we need to understand the characteristics of the market good if you want to minimize the loss. By understanding karaketristik of the market then we can predict where the market will move today. And we also can trade with small lot if you want to risk our trading small.
Always have a plan according to your strengths;
Ask reliable people for strategies;
Don't be deceived;
Have a back-up;
Don't hurry too much;
Record relevant details.
Forex has a very high risk, with the risk that we should have a good risk management so that risk can be minimized greater. For that we need to use SL when trading and therefore a greater risk can be minimized by good
- Always use a stop loss
- Risk fixed percentage per trade
- Have a daily stop out limit, $ amount or account %age or number of losing trades in a row
- Have tools to tell you when volatility is not suited to your trading style (too high or low)
In order to minimize loss in Forex trading there are two main factors to consider.
1/- Lot Size / Position Size
Only risk a specific number of lots per trade.
This means, every time you open a buy / sell trade with one fixed lot size.
Most fund managers only risk 1% per trade. You need to calculate 1% based on your trading account capital.
2/- Stop loss in pips.
Use a fix stop loss. This means, every time you open a buy / sell trade, you are always going to place a stop loss. You could get slippage from your broker but in order to control your risk, you should place a stop loss.