I am Somewhat new to trading forex, first time going live ive studied it for some time now. Yet i managed to get myself in a problem I bought EUR/USD I think on thursday I was up and all of a sudden quick derop and my stop order closed out but I went back in and now down to about 1.35358. Ive been holding this order because i dont want to take the loss in hopes the market goes back up relativley soon.
So my question is will the EUR/USD be going up anytime soon? And any advice on what to do would be greatly appreciated
Hello, I am a relative newbie myself, hereās my two cents:
Consider:
-It could go A LOT further down than it already has.
-It could retreat back to your buy point before it heads way down.
-It could reverse itās course and head way up.
Does that make it any clearer?
You are going to have to make your own mind up as to when to cut your losses or wait it out in hopes it returns. Stop losses are great for the very fact they will save you from situations like this. If you keep your losses small you can make a lot more misses until you hit on something good like a proven trading style. The fact is you are going to make mistakes like this and the sooner you learn from them the better. No mistake you make right now will be the wrong one unless you donāt learn from it.
Hi, sorry to hear that. But here are your mistakes:
-Not discipline. You have a stop loss but you enter the market again.
-ābecause i dont want to take the lossā. Professional trader has lots and lots of stop loss. They have their loss minimum so they can trade again in the future.
Forex Risk Management: Limit Forex Trading Losses by Managing Risks
-āin hopes the market goes back up relativley soon.ā Hopes and praying is not good in forex.
Yea thanks for the reply, I understand now i made a few mistakes but i knew that from the begining when i was up 20$ on my first trade in 15 min. Thats when i shouldve went out. But i thought i had few good signs of staying in but things didnt work out to well. Do you have any idea as far as recent EUR/USD forecast. My loss right now i can handle but looking at the info here it seems like it may rise again within the next few days.maybe. Im gonna have to do some research on that and see if its worth sticking it out for profit or smaller lose.
Staying in a losing trade just because you hope it might go up, then get out. You already surpassed your initial stop loss. Close it out now.
EU is going down now and at least for the time being. And if it breaks the support line thatās been keeping it up for the last couple weeks, that puppy is sure to drop hard.
It sounds like you are making up your plan as you go. Thatās not a good way to trade. When a ātradeā turns into an āinvestmentā you might want to get out.
Now if you had a plan that allowed for seat of the pants decision making and holding on to a loser you would not be asking these questions because a plan like that should have an exit point be it total pips or total % lost.
I do trade with a plan like that and in my experience 135 pips is outside of the range I would hold a losing EUR/USD in the hopes a retrace or London open might get me back to breakeven. A 50 pip bump on a retrace or session open/close is within reason and my risk level, 135 pips you need a trend to help you out I donāt see it.
The real point you need to get from all this is. You need to make all the decisions about when to get out in profit or loss well before you enter a trade.
Everyone has given you sound advice. All I can add is that you really have to rigorously trade your system and to trust your system. If you receive a valid entry signal, take it and have the conviction to stick with your system. If you get stopped out, well, that happens to the best of us. As long as you are not risking more than you aim to make (i.e. reward:risk should be 2:1 or more), then even if you only win 50% of your trades youāll still make profit. But that only holds if you are strict in your system. If you think risk say 20 pips on a trade, and cash out when you are only 20-30 pips up, you are setting yourself up for trouble.