Sunday, April 25, 2010

Forex Trading: How to Deal With a Loss

Forex traders have to learn how to take losses. Taking losses is part of any investment plan. Learning how to manage loss and risk is the key to being a successful long-term Forex trader. Losses are an inevitable part of investing because nobody is right 100% of the time.

Even Bill Gates sometimes takes losses in his business, why shouldn't you.

There will be occassions where you will have a number of successful consecutive trades. But those winning streake will eventually come to an end.

At that point it’s very important that you learn to trust your trading strategy and don't panic.

Stay out of the Forex market until you can regroup and re-evaluate your gameplan. The key to managing losses is to cut your losses immediately before a small loss becomes a large one.

Never go into any investment or business endeavor thinking that you will never lose. That's just ludicrous. Losses are just like profits, it’s all part of the trader’s universe.

Losses are unavoidable. Get over the loss and move on to the next trade.

1 comment:

  1. The content posted above is really worth a read. The first rule is always: save your capital and the second is Never invest money you will use for your primary needs.


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