Setting stop losses and trailing stops if you are day
trading is most important. This is part of trade management and
preserving your trading capitol. When trading your money for real,
logic and objective analysis can often disappear, forcing a forex
trader into making bad decisions and deviating solid trade management.
Exiting a trade smartly will make you money staying in a trade to see
how it will turn out will lose you money. Traders need to use as much
consistency in trading as possible and this can be achieved by logging
results and having a trading plan. Taking trades with pre defined
rules and not changing the tactics half way through the trade.
You need to set trade management rules and stick to them, but if
traders can stick to doing the same trading over a period of time, we
can then see this for ourselves and make the necessary adjustments
If you are losing on trades you need to find the answer to what is
causing the problem. Take a look and if you are a now forex trader you
should not trade at news releases. this can be dangerous because of
the large spike and doji's that form.
These spikes can take out your stops in a heart beat. traders need to
gaining more confidence in trading strategy and plans by doing the
statistical work that will get them there.
Finding answers to your losses will make you a better and more
profitable currency trader. Improving how you react to the evitable
trading losses that come with trading will improve your chances to
make less risky trades and make more money.
Your trading knowledge is the only way to fix problems and change the
outcome on losing forex trades.