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Thread: The best Way to deal with losses for beginners

  1. #1 You can automatically minimize the read posts in your account in the 'Forum Settings'
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    Default The best Way to deal with losses for beginners

    The best Way to deal with losses for beginners

    First situtaion: trading in loss with small leverage

    - When entering into a reversal trade with a small leverage and in the event that there is sufficient margin available for trading to enter into new deals. Here, the trader must look for a distinct opportunity, preferably on another financial asset that differs from the previous financial asset that is achieving a loss at the present time.

    - For example, if the dollar was rising, and a trader bought the euro against the dollar, in other words, he sold the dollar, then the euro-dollar pair began to decline, without the trader placing an order to stop the loss. In such a case, it is preferable to buy the dollar against another currency, and in order for the success rate to be greater, it is preferable to search for the weakest currencies and buy the dollar against it.
    - Generally, the trader needs to have enough experience to analyze the trend and forecast price movements, so that he can know the right time to enter and exit each of the open trades. Other than that, currency trading is a form of gambling and adventure.

    Second situation: Trading in loss with big leverage

    - When entering into a trade in the opposite direction with huge leverage and there was no margin available to open any other deals, so that the value of the account gradually approaches zero, in such a case the trader has a choice of only two, which are depositing into the trading account and analyzing the market in another form.

    - The second method is to enter a trade on the same financial asset, but in the opposite direction of the first deal. Suppose, for example, that a trader has a capital value of $ 1,000, and he entered a certain deal with a large leverage (1 lot, for example 1.0), then this means that losing 100 pip points means the account's weighting and losing the entire capital, and this in the logic of money markets is a great risk, as The market could move the 100 pips in a few minutes.

    - If this trader bought the sterling dollar pair, for example, with the leverage that we mentioned, and the sterling dollar began to decline to 75 points, here the trader would lose $ 750, and in this case there is no margin available for trading and entering into new deals. Even if there is any margin available, entering into any new position is considered the shortest and fastest way towards account review. So what is the solution?

    - The solution, as mentioned, is to use hedge and enter into a sell position in the pound against the dollar at the same value as the buy position (1.0 lot). In this case we have a buy and sell position on the same pair, which means that we have stopped the loss bleeding. However, in order for the trade to be managed properly, the trader must have great experience with which he can correctly predict the trend.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


  2. The Following User Says Thank You to borisforex For This Useful Post:

    evanshad (11-03-2021)

  3. #2 You can automatically minimize the read posts in your account in the 'Forum Settings'
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    nagarajnow is an unknown quantity at this point nagarajnow's Avatar
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    Traders who trades with discipline and following proper money management, losses wont hurt their mindset.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


  4. #3 You can automatically minimize the read posts in your account in the 'Forum Settings'
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    evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad has a reputation beyond repute evanshad's Avatar
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    The methods that have presented in your topic on reducing loss I think are not suitable for a novice trader, as I see entering new trades to reduce the losses of the first trade. It is a method that needs a professional person able to control his feelings and choose accurate entry areas, and this is not enjoyed by the novice in the market.
    Therefore, the novice trader, in order to control the loss, must first have a very good education and training period.
    After that, he creates a clear trading plan and is committed to it.
    Each trade has a stop loss level and a take profit level based on a good analysis of the chart.


  5. #4 You can automatically minimize the read posts in your account in the 'Forum Settings'
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    I will share my experience on how I choosed a good broker like FP Markets. The first important thing in a broker is reguilation, after that check on the brokers reviews and rating and try their demo account to check for slippages and spreads.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


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