Stop Forex Trading Losses

If you've been practicing with a Forex demo account, and you've blown numerous demo accounts (like I have - lol), it's time to wise up and identify what you're doing wrong. Based on my own experience, I would bet you're caught up in the adrenaline rush of trading as a whole, and with that comes the desire to try to make big bucks with each trade, which is a volatile trading strategy.

The obvious downside to trading large lots is the fact that when things go the wrong direction, you stand to lose a large amount, risk the chance of a margin call, and your frustrations will get the best of you. I personally think experiencing margin calls within a demo account is a good lesson to learn, because you never want to have a margin call occur when trading with your real money!

The three Forex trading tips I've provided below are written with the assumption that you already understand what constitutes a buy market order, vs a sell market order, which is one of the first lessons you need to perfect. Once you get that down, then these three tips will be beneficial to you. So, in order to stop losing trades, here's some quick tips that I've learned:

1. Open trades in a small number of lots
2. Allow your profits to run long
3. Cut your losses short

If you follow those three quick tips, your trading should improve and you'll experience less frustration. By trading in small lots you will have smaller losses, assuming you allow your profits to run longer. Trading in too large of lots puts you at risk of having all of your available margin tied up, with no room to correct your error when the market goes the wrong direction.

If you found those three Forex trading tips to be useful, here's a longer list of Forex trading tips, and an article on how to reverse your Forex losing streaks!

Happy trading with the Forex!

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