It sucks making a loss, but you must remember every loss comes with a reward which is worth more than you lose. You will never forget a lesson learnt from losing real funds. Every time you enter a trade, write down the reason for your decision, the conditions in the market(price action) and your state of mind. Write down the reasons that might lead to a loss ( for example entering too early or entering on weak candle formations) even when you have confidence in your trade. If loss then occurs it’s easy for you to spot your mistakes and identify factors that might have caused a move against your trade.
Losses are the part of forex trading but you minimize the loss with good strategy and plan. Always make a strategy and trade according to the trends of the market.
Add market sentiment changes related to fundamental media news. GBP/USD is a prime example where you got everything right, but a news item causes a retracement.
This is for sure a painstaking process to follow especially for newbies but one that will really yield results if they analyze the data they’ll get and continue to journal.
I recently discovered the use of journals, it is helping me develop a system that suits me.
Are you physically writing them or do you use Google Docs/Word Doc?
Physically, but sometimes I use the notes application in my phone.
Oh nice. Nothing beats pen and paper. It’s a dying art. I’m glad you’re still using notebooks!
Yes, keeping a track of your losses is important, but what is critical is that you learn something from the losses. That’s why it is essential to set up a trading journal that helps you keep track of your trades.
I find it more secure. I don’t have to worry about my computer crashing.
I think keeping track of your trades and reviewing them is crucial. This way, you won’t just learn to cut losses but improve your winning trades as well. I was losing so much at the beginning by cutting the winners short, just to figure out that I could let them run for at least 30% more.
I recently figured out moving stop loss to newly formed swings on 15m or 5m can reduce stress and help you hold trades for long periods. You just have to do it strategically, so that if you are taken out on new stop loss, your profit is equal or greater than your initial stop loss.
and soon you will realize you’re in a dead end ,which is good thing
This is actually so true. Based on experience. Being a beginner, it’s okay to lose. However, we should learn something from it. Just need to have money management.
I always backtest my trades so I can trade better in future.
Losses in the forex market teach a trader a lot. These losses help a trader understand their own weaknesses and strengths in forex trading. They also teach a trader ways to avoid experiencing the same mistakes.
Yes, In trading, either you should be making profits or learning something. Winning and losing is part of the game, but you progress when you learn from your trades.