Yep! new comers make forex so complex by these heavy calculations but the reality is something different. S&R, demand and supplies, SL, TP are the real beauties! These are the pillars.
Accepting a stop loss means accepting that forex is not an exact science. It is always subject to human error. In forex trading, you have to accept that even the top traders in the world lose money from time to time, so there is nothing wrong with you. It is just the nature of forex trading.
I agree with you. Greed is the number one factor why we lose in forex. Everything seems so tempting, but the market changes in seconds. We should stick to our trading plan.
Agreed, tempting temptations really.
It is always safe to use SL while trading. If the price rises higher and your SL restricts the profit you could’ve made, just accept it. Rather feel relieved that at least you did not lose any big amount and go ahead with your next trade.
What are you doing to manage the trades? Do you mean just actively watching them? How long do you hold trades open? Overnight?
It’s a very spread issue among traders. They’re afraid of sl however I look at sl as at life jacket. It helps me to reduce risks and lose less money than I would lose without using sl. I have plenty of situation when I lost 15-20% per deal, however in fact, if I wouldn’t use sl I would lose 100% of my deposit. In my opinion, it’s not difficult to accept the fact of existence of sl, because it literally helps traders to weigh all the risks wisely. If you have a system then you shouldn’t pay attention to sl. It’s just a life jacket, at least you can relate to sl as to life jacket.
Accepting a loss isn’t easy especially when it goes back in your favour but been able to dust yourself off and move on is a must have skill for successful traders
We Should always move on and accept the SL because revenge trading and aggressive trade will leads towards end of our precious capital. trade next day and find good entry and cover the loss. Thats how exactly i do.
According to me, it is better to gain less profit than to increase the risks of losing. SL is a life jacket for all traders that protect their money from heavy losses.
Yeah that’s true. I also focus on managing loss to gain more experience and learn the most difficult part of trading and consider profits as bonus or reward for my progress in right direction.
Exactly! Traders forget that they are prone to error and get influenced by emotions. And when they trade, things don’t always go exactly to the plan. With the use of SLs , they can prevent unprecedented risk caused due to market’s volatility.
i said :don’t accept your SL ,it will return eventually ,with profits.
To accept your stop loss is essentially accepting that your were wrong with your idea of where the market might or might not go. Perhaps that’s why it’s so hard to do so sometimes. It helps to consider the fact that in some cases, accepting your stop loss actually leaves more money in your account to take your next trade. So would you rather accept that you were wrong and reserve the chance to be right on the next trade? Or lie to yourself about being right and potentially lose the chance to bounce back?
If your account isn’t big enough to withstand the amount of loss you would go into before returning to profits? What then?
I faced such traders during the whole trading activity who always bother about their stop loss. They claimed that if they would place it lower or higher they would become richer. It doesn’t work like that. Trading, as well as history, doesn’t like subjunctive mood and it has to be understood by all the rookies. Professional traders understand this simple truth. If you placed the SL on particular position, then it was probably the part of your strategy.
Actually, placing a SL order is also a kind of art. This thing should be studied by all the traders and it doesn’t really matter what kind of experience you have, whether your are a professioanl or a novice. As for TP, then everything is much harder, because wherever you place the tp, you will always complain about it.
Yeah, that’s true…until the day price reverses AFTER hitting your TP. But, who knows how often that will happen. It depends on your strategy. Sometimes, you just gotta be happy with what the market gives you.
Accept the profits and move on. The next trade is on the horizon!
This kind of optimistic outlook is very important.
I would say cutting your losses early is as good as making profits. You successfully managed to lose a little where you could have lost a lot more without an SL. So hitting the stop loss levels is not really a bad thing all the time.