You might be wondering by reading the title of this article. How come we manage the losing trades? Losing trades are gone case and there is nothing we can do to change the past. Pro traders in Hong Kong has a unique way to manage the losses. Based on their losses, they bring strategic change to their trading approach by which they make the recovery process easier. Without having a strategic recovery factor, you are not going to survive long in trading. For the creation of a strategic approach, a trader must learn to manage the losing orders.
Finding the faults
The losing trades are one of the important factors that can help you to identify the mistakes in your trading method. In most cases, the traders forget about the losses and wait for the next trade. But the smart traders access to their trading journal and find the fix to their problems. This might be a daunting task for the naïve traders, but if you develop the habit of writing down the details of each trade, it won’t take much time to develop your skills to fix the faults in the trading method.
The elite traders always encourage rookies to keep track of their trade. You can also do the same and see the dramatic change. At the weekend or your leisure time, try to find some easy method by which you can fix faults in your trading system. Without having a journal, you will never know about the key faults associated with your trading approach.
Scaling of the trades
After losing a series of trades, you might not feel confident with your trading strategy. To solve this issue, you can check out the educational resources at Saxo. You have to accept the losses and wait for the trade setups with a big smile. There is no reason to look for the best trading signals all the time. The market is designed in such a unique way that you will often lose trades. Those who have the skills to scale the trade can make a big profit and those who don’t will always lose money.
Think about the winning trades. After winning a big amount of money, traders increase the lot size based on their capital size. So, if you lose a decent amount of money, you should do the same. Decrease the lot size so that the risk exposure is not exceeding 2% risk. By doing so, you can safeguard the capital in any market condition.
Develop your skills
Those who are losing too much money at trading must have faults in their trading method. Without fixing those fault it won’t be possible to ensure decent income from trading. Write the key reason for which you are losing money. Go through the losing orders and you will find some weakness in your trading method. Focus on your weaknesses and improve your skills. Remember, developing your skills is an ongoing process. So, if you ignore to follow the strategic approach in the trading business, you are not going to make a big profit at trading.
Trading the Forex is all about finding the best trades. If you want to become a great trader, you must focus on your learning edge. By learning more about this market, you can make a better decision and it will help you to find great trades.
Dealing with your psychology
After losing a few trades it’s normal to become emotional. The emotional traders are always losing money since they don’t know the proper way to place the trade. They take too much risk in each trade and try to boost up the profit. But by doing so they are risking a great portion of their investment. They lose a big trade and they become emotionally unstable. So trade the market with low risk so that you don’t have to trade under stress.