Forex How to lose money

I am starting this thread to help me and other fellow traders deal with losing periods.

I must start by saying that one of the delusions we have as traders is the believe that one day we will find that magical strategy that works all the time and deliver consistent, painless profits to us. Well if you are still in that delusion, let me break it for you. The truth I have realised after 6years in the market and probably upward of 10000trades executed is this: you will lose money.

I have learned to deal with loses with having a hobby aside trading. You need to learn to get away when you are getting smacked. Or have a dairy where to talk to yourself about how this week you are getting killed and how you feel like quitting the strategy or even trading altogether.

I think the most important thing in trading is learning how to deal with losing and often so consistently. I think the alpha problem with us traders is that we have been programmed to avoid pain. By trying to avoid losing, you lose. You need to accept the reality of trading: when you take risk, yes you have the upside but you can also get your *** handed to you.

Source.

 

Risk is the common factor of forex market. A trader can face the loss most of the time if he has no knowledge about trading. A trader should know the right time, right place and right currencies while he is trading in the market. Most of the traders lost their money because of their little knowledge about forex. Most of them don't know how to recover losses. Sometimes traders take decision emotionally after loosing money. It causes more losses. I am also a trader of [removed]. I always welcome losses and think that loss is the energy to make profit. Taking wise decisions can recover the losses.

 

One basic mix-up new traders make is misjudging how leverage functions. Acquaint yourself with margin and leverage to help maintain a strategic distance from incidentally putting more capital at risk than you had arranged. Numerous traders think that its supportive to set a most extreme level of their capital that they will risk at once, as a rule 1% to 3%. For instance, in the event that you have $50,000 of value and will risk 2% most extreme, you would not tie up more than $1,000 at once. It is significant that you adhere to that greatest once you set it.

 

Loss is the part and parcel of forex market. Every trader wants to reduce their losses. If you want to reduce your losses you need to study more and more about forex market. Basically new traders are not serious about the losses. To reduce the losses every traders need to make a plan and walk through that plan. I always trade with [removed, pay to advertise]. It has low spread and give personal advice to reduce or recover the losses.