How to Avoid Forex Losses In Forex Trading?

#21
Traders should use different risk management techniques in order to avoid losses. For eg. calculating and predetermining the risk reward ratio. Or not risking more than 2% of the total trade.
 
#22
2% of the total capital is the industry benchmark however the new traders should not risk even 2% and instead they should learn and acquire the necessary skills before risking their capital in trading.
 

stoch

Active Member
#23
2% of the total capital is the industry benchmark however the new traders should not risk even 2% and instead they should learn and acquire the necessary skills before risking their capital in trading.
Well depends on the number of trades per day and per month. For example if you expect to make 20 trades per month, then risk per trade can be 5% or even more. For scalping it makes more sense to set conservative risk like 1% or 0.5%.
 
#25
there are no ways to avoid losses in for. if you don't have any mistakes then you don't develop you know. hence, you are obliged to make mistakes, but watch for the amount of these mistakes. it's kinda sad if you will have only lost positions, without wins.
 
#27
Forex offers us great opportunities, but it isn't without risks. You can use risk management, like setting a SL, using reasonable leverage, etc. to severely lower the amount of money at risk, but it isn't possible to trade without some risk. Another suggestion would be to try any new strategy in demo before you try it live, so you don't lose any money and can see any problems before anything is on the line.
 
#28
You can't avoid losses , but can minimize them.
Take entry at the price where stop loss will be minimum.
And take quality trades over quantity.
Don't take random trades.
 
#29
You can place a stop-sell order at a specific price to have your position automatically closed out when that price is achieved, preventing the danger of uncontrollable losses. A stop-buy order will be in place for a short position. Profits can be protected via stop orders.
 
#30
The best way to avoid losses is to not trade. Much in the same way the best way to not get pregnant is to not have sex. There is risk involved. Your job is to manage that.
 

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