How To Stop Losing On Winning Trade

Chitika   September 27, 2017

How To Stop Losing On Winning Trade

Trading Without Stop Loss Orders Is A Recipe For Disaster

Learn from this simple forex blog outline forex trading tips that how to stop losing on winning trade. Stop-Loss orders are an important ingredient to trading successfully. Understanding the importance of limiting losses and letting profits run centers around the use of stop-loss orders. No one can ever know, with 100% certainty, when a market is going to turn against a position or how fast.

The key to successfully making a business out of trading is to properly manage your money and your risk. Your money and risk go hand in hand.

For example, in managing your money you need to look at how much you have in your account and then plan on only risk a small percentage of it on any given trade. If the trade goes against you by this certain percentage, you must exit the trade.

For most traders, they find it hard to exit a losing trade in hopes that it will recover and turn out a winner instead. More often than not, sadly, the loss gets worse and the account takes a bigger hit. Many times, this ends up wiping out the account and putting the trader out-of-business.

In order to implement a proper money and risk managing scenario, the trader needs to be disciplined to accept the small loss and get out. The problem that often arises is that decision making starts to get a bit foggy for many traders as they watch the prices moving up and down, and the decision to exit is often being second guessed or questioned during the trade.

To help in regards to this problem that most traders have, the risk must be assessed and the price to exit must be planned BEFORE the trade is initiated. Once the trade is active, a stop-loss order should be placed at the predetermined price level and not moved except when the plan calls for moving it towards and into profit, not the other direction.

Why You Should Develop A Stop Loss Trading Strategy

Developing of a stop-loss trading strategy is one of the most important question in the trading life of every active trader. A correctly developed trading strategy helps to protect earned profit and to avoid dramatic losses that could wipe out all investments. There are several factors that define the main rules by which a stop-loss trading strategy is developed.

Stop-loss trading strategy is one of the most popular topics among traders. There is no doubt about importance of this question. A trader may have ten winning trades in a row, still, one loss could wipe out whole earned profit if there were no strategy placed to protect the profit and limit losses. A selection of a stop-loss strategy looks simple from the first view. However, when it comes to a practical implementation, a lot of traders become confused by realizing that it is not as easy as it looks like and it could be even more complicated than generate trading signals. In many cases a good trading system could fail if a stop-loss strategy is not used correctly and a bad trading system could be profitable if a smart stop-loss strategy is used.

A selection of stop-loss strategy is a complicated task mainly because it depends on many factors. Some of these factors are trader's risk tolerance, selected trading vehicle, trading style, forex market behavior, etc...

Risk Tolerance
There are different traders on the forex market. There are conservative and risky players, there are retired people and there are young traders. Everybody have different risk level and in many cases a stop-loss strategy depends on the personal preferences of a trader.

Trading style
Different traders trade differently. One trader makes 5 trades during a single session and another trader makes only one trade a year. Respectfully, the first trader could be looking for tight stop-loss strategy while the second trader could be looking for flexible, less strict stop-loss.

Trading Vehicle
You may trade forex, stocks, options, futures and with any of these tools you would be looking for a different stop-loss. While a forex trader could be looking for constant stop-loss level, an options trader may select two dimensional stop-loss strategy (price and time: the longer you stay in position the tighter stop-loss become).

Forex Market Behavior
The forex market changes constantly. Today you may see quiet peaceful up-trend; in month you could be in the volatile, scary decline. Depending on market volatility a trader may select different trading strategies: tighter during quiet markets and more risky during volatile periods.

These are only a few factors that affect selection of a stop-loss trading strategy. Every trader should come to this question very seriously. There is not a lot of information about that and in many cases a trader has to learn and develop a stop-loss system by using his/her own trading experience.

Why Use Stop Losses Orders

Stop orders can be very helpful in the forex market. And I believe they are accentual to anyone looking to trade the markets.

It can help you to limit your losses when you are wrong and keep your gains when you are right. Many new investors will fail because they do not utilize this order.

So what is stop loss orders. A Stop loss order is typically used as a closing order to limit your losses or lock in your profits on a long or short position. But they can also be used to open a position. Stop Loss: Triggers a market order (buy or sell) when market price hits the stop price.

So why should you use it?

Limit Your Losses
The most important part of trading is limiting your losses.  If you lose all of your money on 1 bad trade it doesn’t matter how good of a stock picker you are.  You need to have at least some money to make money from it.

Another great reason why limiting your losses is a good idea is because the less you lose when you are wrong the less often you will have to be right to make money in the market.

So how do you use stop orders to limit your losses?  Well you simply place the order to sell the forex at a lower price.  For example if you buy a forex market at $20 and you feel like it is a good buy unless it dips below a support level at $18 you could put a stop around $17 and that way if it does fall lower you will get out at $17 for a small loss instead of waiting for it to $!6 or $15 and beyond.

Stop-loss orders help to take your emotions out of the trade. If you can discipline yourself to keep the stop-loss in play and not remove or move it (except towards profit territory), you then do not have to concern yourself with foggy reasoning during those times the market is not moving in your favor.

Wise advice is to let your profits run and keep your losses small. Stop-loss orders are powerful tools for allowing you to do this. While they help you keep your losses small, they also can be used to trail your position as it goes into profit, allowing the trade to accumulate profits as long as the market does not change trend. At some point it will and then your trailing stop-loss order is hit and you are out with your profits.

How To Stop Losing On Winning Trade

Fear Of Being A Losing Trader

Chitika   Juni 26, 2017

Fear Of Being A Losing Trader

Get Rid Of Fear Of Being A Losing Trader Once And For All

Once you feel the fear of being a losing trader, you never want to go back there. While taking losing trades is inevitable throughout your trading career, you don’t have to be a losing trader! we talk about this forex blog, Find out how to implement some very easy, common sense ways to make sure you do everything you can to avoid being a losing trader.

Greed and Fear?

This is the worst aspect of the trading: lack of self-control. Trading gives total freedom on deciding when and where to buy and sell but this is also why freedom becomes a hindrance. Discipline is the only method to alleviate fear and greed. Without it, it will set the tone a fear of losing everything and greed will prevent from taking profits when it’s right the time to do so.

We have heard it: the market is not driven by money but by greed and fear. The two biggest emotions that move markets up and down at random; they seem to fluctuate without any logic behind them.

Why do we get these emotions when we trade? After all, it's stocks we're trading, not playing sports where our bodies are physically working to exert energy and sweat. So why then does it take to so much emotion just to click a buy button and a sell button and watch the screen with numbers moving back and forth?

HERE'S THE SPECIAL LINK FOR PROVEN FOREX TRADING STRATEGY THAT MAKE TRADING EASY AND PROFITABLE!

When it comes to money, it's the master of us all. It doesn't matter what walk of life we hold, we are taught that money is the only way to reflect us as successful and accomplished people. But in the end, does it come down to money to become successful in trading?

The answer is no. Why? Success comes from loving what you do, not from doing what you're doing for the sake of money. There are people who work at jobs they don't like. Many do it just to get by but do not have the drive to excel. People who love their jobs have higher probability to excel in their work because they don't see it as work but something they love to do. Many of us enter the market to make money, not lured by the challenge of figuring out how the market works. It is the reason why new investors and traders start by placing a large position thinking the trade in monetary value, profit or loss. They think will be quick and easy, not really giving thought on how to figure out this complex but interesting market first before committing money in there. By committing money, its about the money, not the pleasure of learning about the markets.

This is where fear and greed comes in. This very first thought people make when entering is 'how much can I make?' and not 'I wonder how this market works?' There is a big difference in this mindset. When we don't worry about the money, we can view things in a more objective way. Believe it or not, there is a fine line from being in a trade and out of a trade, especially holding a big position. The emotions overtake judgment very quickly when a major loss is on the line with the prices fluctuating rapidly.

4 Forex Tips For How To Improve At Fear Of Being A Losing Trader In 60 Minutes

So how do deal with this? There are several things we can do keep greed and fear out of the trading plan:

1. Start trading smallest positions possible -The idea is to learn, improve and perfect trading while not thinking about the importance of gains or losses. This should subdue if not remove the fear and the greed.

2. Use stop loss order - Believe it or not, stop loss orders bring comfort and peace of mind that would otherwise bring many traders sleepless nights. Why? Not knowing how much the loss is, which can be unlimited, carry a major concern. This method will get rid of the fear factor.

3. Create a trading plan - Having a plan of attack, where to get in and where to get out in a certain market condition relieves the trader from having to think on his feet; without a plan will cause the trader to freeze and be indecisive and in turn cause more emotional stress.

4. Set target price - This may help in deciding before the trade when to take profits, not leaving to decide when to exit. Target profits helps against greedy feelings on thinking that the profits will continue to rise. When it doesn't and profits turning into losses, the tendency is to freeze and not take action. Having profit targets also help prevent the taking profits too early. This is also a fear stemming from being afraid the profits will disappear and turn into a loss.

This is the worst aspect of the trading: lack of self-control. Trading gives total freedom on deciding when and where to buy and sell but this is also why freedom becomes a hindrance. Discipline is the only method to alleviate fear and greed. it will set the tone a fear of losing everything and greed will prevent from taking profits when it's right the time to do so.

Fear Of Being A Losing Trader

If You Are Tired Of Losing On Your Trades Then Follow This Simple Strategy To Buy Low And Sell High

Chitika   Juni 07, 2016

If You Are Tired Of Losing On Your Trades Then Follow This Simple Strategy To Buy Low And Sell High

Simple Strategy To Buy Low And Sell High

This forex blog about if you are tired of losing on your trades then follow this simple strategy to buy low and sell high. Here’s a great 'ten simple tips’ forex trading strategy which you can use to maximize your trading profits whilst at the same time minimizing risk to your trading capital. If you already do your own trading and can set automatic buy/sell orders then this strategy is perfect for you.

No matter which forex trading strategy you read about or try, they all share one fundamental principal  that is to buy low and sell high. Sounds simple enough, but then why do some 90% of traders manage to get in and out of the market at the wrong time, over and over and over again?

What over-powering force is in place which steers the 90% to do this? The answer is human nature and the counter-intuitive manner in which the forex market operates.
The 10% of traders who consistently make money in the forex market do so by buying when the masses are selling, and selling when the masses are buying.

They do this by following a dozen or so strategies, some simple, some more complicated. It is not in the scope of this article to go into each and every strategy, but here's one anyone can use.

I MAKE $300 EVERYDAY WITH SMA AND MACD FOREX STRATEGY 

The links at the end of this article point to the web page where you can see this strategy in the form of charts and graphs which make it much easier to understand. Take a look if you're finding it difficult to picture it.

The Ten Tips Strategy:

1. Study the 12 month charts of several reasonably well known companies and pick out forex that have been in a steady UPWARD trend throughout the period. There are always plenty of them, even in a falling market.
No stock is ever a sure thing, but give yourself a head start by choosing one which is going in the right direction! Fundamentals don't mean anything if the price of your chosen forex is trending downwards. Don't care what the company is or what it does. This is irrelevant, you are just here to make money, period.

2. Check out the trading volumes and eliminate any which lack decent liquidity.
Avoid forex with not much liquidity (not a lot of buyers/sellers) as you need to be able to get in and out easily and without effecting the price yourself.

3. Study the 3 month chart and check the recent levels of resistance. These are points where the forex price has peaked and then pulled back, before breaking new heights again.

4. Place a mental note to buy at a price just above the most recent top. Note you are not actually buying  at this point, just making a mental note to buy when it hits this price.
The forex will need to reverse upwards again and 'break through' that last resistance level to effectively 'buy you in'.

If the forex price does not reverse but instead further drops away, simply lower your 'mental buy order' to just above the resistance levels going down and wait for the stock to turn back upwards again.

The great part is the more it drops the better as you have still not bought in.
If it is a well known company and there's temporary bad news surrounding it (anything except impending closure) you can be sure this stock will eventually bounce back and catch up with (or even temporarily over-take) its long term trend.

When it does it will catch up quickly, over a few weeks perhaps. Follow the next steps and you will be sitting on it all the way up to next top. Gains as much as 30% are common.

5. When the forex price eventually reverses direction back up and passes up through your buy order, immediately buy at market price.

6. Now set your stop loss. Study the last couple of months of the chart and check the rising levels of support. These are points where the forex has resumed its upward direction following a pull back.

7. Place a 'note to sell' at a price just below a recent support level. Not too close but not more than 5-8% below your buying price. Your sell order is now your stop-loss.

I cannot stress more - you MUST use a stop loss. Your stop loss will protect your capital if the stock unexpectedly reverses down again. You can always get back in later when it recovers from a very deep pull back (and make even more money in the process).

8. As the forex price movies up, but as soon as reasonably possible, move your stop loss (sell order) up to your buying price. Your stop loss is now your break even. Don't do this too soon as the stock price may possibly test the support level above your stop loss before heading up again. Give it a few days to do that if it's going to.

9. As the forex price continues up, keep trailing your sell order up with it to just below the support levels going up.

10. When the forex price reverses direction and passes down through your sell order, immediately sell at market price. Your sell order is now your stop gain.

On a final note, one of the greatest obstacles to success will likely be you. One of the hardest things to do is to actually sell when your stop is triggered. There's always the voice in the back of your head telling you to hold on a bit longer if the price moves against you. This could be the death nell of your trading because if the price continues to fall it will erode your trading capital.

To counteract this danger you should try to automate many of these processes. Set your stops and if the stop is triggered you can find out why afterwards.

If You Are Tired Of Losing On Your Trades Then Follow This Simple Strategy To Buy Low And Sell High

Forex Training - How To Stop Your Losing Streaks In Forex Trading

Chitika   Januari 04, 2016

Forex Training - How To Stop Your Losing Streaks In Forex Trading

Trading Tips To Losing Streaks In Trading

I know no one can win in forex trading for every trade he does, but we can prevent from losing a lot with some forex strategies in place. Imagine that if you risk 2% of your trading account on every trade, a small losing streak of 5 trades will mean that it will cost you a 10% loss in your account. Although it's not considered a very big amount, but the thought of losing 5 trades in a row is a very daunting experience for those traders who are just learning to trade forex.

FOREX TRADING CHECKLIST - ANSWER THESE 3 QUESTIONS BEFORE YOU CAN MAKE MONEY ONLINE

You have to remember that the psychological of human is very reactive. We humans are very emotional when it comes to forex trading. In mathematics, we can say that we only risk a trade with 2%, but it can accumulate can becomes 5% the next time you have another trade . Why? This is because most newbies will make a mistake of overtrading or have the mindset of trying to revenge the losses they incurred. Before they knew it, they already lost much of their trading account. So what you can do is to take a break from the forex market if you have few losing trades in a row.

3 Steps To Surviving Losing Streaks In Forex

1. Kill Your Losing Streak - If you have noticed, losing streaks usually start off with small losses. It may be a little mistake that you have made in technical analysis or that particular day is just a day with bad luck, which leads to your lost forex trade. Then from there, you want to try again and hope to recoup the losses. But the losses amplifies and everything repeats again. In order to reduce losing streaks, you have to cut the losing streaks short and close the charts to take a rest. This will prevent you from wanting to trade more, leading to more mistakes made.

2. Take a Break From Trading and Clear Your Head - You might lose your concentration if you stare at the forex charts for a very long time or the losing streaks might be caused by information overload. Once you sense that, go for a short break before coming back again to trade. You should always look at the charts when your mind are refreshed.

3. Preserve Your Trading Capital - This is the most important forex tips. If you have lost all your capital, then how are you going to trade again? Always trade a small margin of your forex trading account according to your money management rule. This will prevent you from losing your hard earned money from making stupid mistakes.

TEN SHOCKING FACTS ABOUT FOREX TRADING MISTAKES 

When I was a newbie, I had some losing streaks using my demo account. Luckily it's not a live trading account! During then, I did not implement any money management rule. Until when I realized that money and risk management is a important factor for me to be successful, I started using those rules and from then, my trading account kept growing.

So please do not be reckless in your trading no matter what your forex trading strategy is. Build your gains slowly and you'll take a step to being successful in forex trading.

Forex Training - How To Stop Your Losing Streaks In Forex Trading