You can compare it to boxing or fighting. Imagine a fighter that hits very well but somehow cannot take the enemy’s kicks and punches and goes down after 1 punch. Do you think he will become champ? Unlikely no. I don’t think any boxer/mma fighter out there has never ever been hit before. Ali, mayweather and so on all have been hit by punches before but were able to take them that’s why they won their matches.
Back to the issue of trading. That’s the type of mentality traders should have that is to take the losses. It’s actually not an easy thing to do cos i see many trader move their sl way up high hoping price will move downwards and give them a win.
If you want to succeed in anything in to your life experience, you’ll have to take some losses and get over them. What doesn’t kills you makes you stronger. If you can take some knockdowns in trading, I’m sure you’ll be able to make it in this sector. I never get emotional when I have a loser and that’s how you have to do it.
Yes taking risk is necessary to get earning in forex market and risk is not involved just with profits we can bear loss too.When we do loss we came to know how to avoid next time avoiding same mistakes. Loss are teachers for us which no body will tell us that our personal experience can guide properly.
Losing is a part of trading, simple as that. It’s how the individual trader manages those losses.
Unfortunately, FXCM has proven that the average retail trader will lose money 2x as fast as he/she can make it - which is why without proper education and a trading base most crash and burn quickly and painfully. End of the day, a key aspect when trading currencies is to manage your effective leverage. Like the pros do.
Look at any major fund, and you’ll see none of the major players leverage themselves out over 10:1.
Loss is the part of every business and in Forex trading loss can be minimized but trader cannot totally get rid from loss so trading should be done with proper trading plans and strategies.
We should always have it in mind that there is risk in the market and we ought to accept them because there always loss in business sometime but it shouldn’t be a frightened to overcome. Besides, there are stop orders that can help to minimize the risk to avoid much loss. like trailing stop, stop loss and limit order are there in the platform to reduce loss.