Positions with losses are inevitable; in fact, it is usually more difficult to make money with strategies that attempt to ensure a high rate of profit. This is simply the natural form of market movements.
There are some traders who follow a methodology that attempts to greatly reduce or even completely eliminate losses. There are only two methods that can achieve this and it is important to understand perfectly:
1. Add to a losing position in the belief that he was right when he placed the original position was wrong and that only at the time of opening. You can even add a greater amount in the next position to make recovery easier. The reality is that while this may work as a method usually is not optimal and generally have better results by simply accepting the first loss and closing the position rather than attempt a rescue. After all, if your stop loss was touched Original why the second operation will be better than the first?
2. Change in the wind and open a position in the opposite direction. This is not really avoid a loss, it is actually crystallize a loss by changing the net position. If you go long with a 1 lot and then short with 2 lots will be going short with 1 lot with a net loss in 1 long batch crystallized.
There's another thing you can do: Do not close the position that is at a loss and allow it more and more against them. If you do, you're likely to burn your own.
Hopefully, maybe because I am convinced that we must accept some losing trades. If I have not got, please go back and read it again and again until he is convinced. If you are not convinced, you can write to me and explain his reasons: maybe I could convince you by email!
There are some traders who follow a methodology that attempts to greatly reduce or even completely eliminate losses. There are only two methods that can achieve this and it is important to understand perfectly:
1. Add to a losing position in the belief that he was right when he placed the original position was wrong and that only at the time of opening. You can even add a greater amount in the next position to make recovery easier. The reality is that while this may work as a method usually is not optimal and generally have better results by simply accepting the first loss and closing the position rather than attempt a rescue. After all, if your stop loss was touched Original why the second operation will be better than the first?
2. Change in the wind and open a position in the opposite direction. This is not really avoid a loss, it is actually crystallize a loss by changing the net position. If you go long with a 1 lot and then short with 2 lots will be going short with 1 lot with a net loss in 1 long batch crystallized.
There's another thing you can do: Do not close the position that is at a loss and allow it more and more against them. If you do, you're likely to burn your own.
Hopefully, maybe because I am convinced that we must accept some losing trades. If I have not got, please go back and read it again and again until he is convinced. If you are not convinced, you can write to me and explain his reasons: maybe I could convince you by email!
0 Komentar untuk "Forex Losses"