Profit turn to negative profit

Beginner Questions Trading Psychology
1

Hi

I have been two months do forex trading. Now my 3 trading in negative profit in euro / jpy, usd / jpy and euro /usd. Is it worth to save my trading from totaly lost instate of negative profit floating or there any I should save this trade??

Thank you

2

Well if you are in sell positions or EURJPY and USDJPY, I suggest to close the trades and cut loss at this stage because we will be seeing uptrend in next week and you might be in more trouble.

3

i agree with shanza… but my point more on this thing:
If we dont know or not sure bout what we do… then obviously just close the trades… coz its not like ourself :slight_smile:

But bout JPY economic activity… i’m not sure yet… coz i got several facts:

  1. Gross Domestic Product on JPY now still rise steadily
  2. Unemployment value decrease while employment still at moderate condition

I think due to BOJ increase the rate so industrial more take defence position
Generally now japan have steady position, will see for BOJ next meeting at may21 result…

For other country… thats ur homework to analyse :stuck_out_tongue:

4

Hey Shark,

You should always have a plan for exiting a trade before you enter a trade. As Spidypips said, if you don’t know what to do, then it’s best to close it. I know it’s a hard rule to follow, but having an all-inclusive strategy for placing a trade is the only way to be consistently profitable in this business. Good luck!

SerenityFX

5

I follow this rule, when ever possible DON’T let a profitable trade turn into a losing trade.

6

A profit position will turn into negative one when we have huge expectation from the trade which we have opened and planning for unrealistic targets are the main reason due to which we turn the profit into losses because of our poor trading attitude.

7

Or overmonitoring our trades. I can’t count the number of times that messed me up when I first started.

SerenityFX

8

Do you at least have a plan???

9

I don’t think that a profit going position should be turned into a losing one. The reason is simple. Use partial position close and move stop loss to break even and let the trade run.

10

The concept of ‘don’t let a profitable trade turn into a loss’ is really a poor concept in my opinion, although others will disagree. When do you set your SL to break even? At +5 pips? At +0.1 pips? The amount of times your profitable trades will be stopped out at break even will be immense, and then you will be suffering from losers as well. This is the opposite of the other well known phrase ‘let your winners run, cut losers short’.

11

You should close trades instantly to save your margin .With 3 trades you are using sufficient margin it can be a big loss. If you can hedge any position for recover loss it is good other wise close them not wait for profit so much time . You can avail profitable trade any other time.

12

I like Shanza idea allot more, i do the same . I can always go back and take the trade at a better price, why let a winning trade go bad in front of your eyes when you can save your self and margin too, as master forex pointed out.

13

[QUOTE=“shanza;488817”]Well if you are in sell positions or EURJPY and USDJPY, I suggest to close the trades and cut loss at this stage because we will be seeing uptrend in next week and you might be in more trouble.[/QUOTE]

The week which is started now… ? Or the next coming week…?

Bcoz this week is almost downtrend… Dont know how u got uptrend…

14

You always can use the Mae/mfe data to set your target, stops and when to move to breakeven.

15

this is the prefect time to sit back and review what you have done , and more importantly what you have done wrong

never close ut trade just because your losing

you should study the market for the same amount of time opening a trade as closing a trade

look at each trade and ask ur self

  1. if you didn’t have any trade open , would you create the same trade now - if not close them , if you think it going to turn , keep it open
  2. review what you have done wrong , when you open the trade - did you rush it , was there news coming out that you should of watch before you open the trade
  3. have a look at the chart , think back why you open the trade , was it correct - can you notice some thing on the chart or new that now you see was the wrong idea

when you have a losing trade - it the most important thing in trading

it teaches what you have done wrong and what you need to do to fix it

if you just get lucky and win every time , when your account is much bigger , you mite lose a huge trade and will have to start over , it better to learn from your mistake

all the best with ur trading

16

[QUOTE=“goldenmember;494087”]The concept of ‘don’t let a profitable trade turn into a loss’ is really a poor concept in my opinion, although others will disagree. When do you set your SL to break even? At +5 pips? At +0.1 pips? The amount of times your profitable trades will be stopped out at break even will be immense, and then you will be suffering from losers as well. This is the opposite of the other well known phrase ‘let your winners run, cut losers short’.[/QUOTE]

My vote is with you Golden member… If its trading then no one will close… If gambling then obviously need to close…

17

Unless you’re 600 pips in the wrong direction, then I think there’s more issues than just a bad trade.

18

I would like to add to what billyboy posted soo brilliantly. Always before entering a trade , see how many pips , you are will to have as a S/L , very important because if the trade goes the other way, you will preserve capitol and you can trade another day,

19

it shouldn’t be a question for you - you must have a predetermined strategy with strict take profit and stop loss, and you should obey it even with closed eyes

20

Well said goldenmember! In the end, no one wants to hear about the breakeven trader. A breakeven account doesn’t equate to success. You just gotta have the guts to take the risk and man up to get out of the trade should it go against your way.