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Mistakes of traders and the attitude to losses
Losses in Forex trading are fairly common, what would be considered their appearance as the reason for the occurrence of psychological problems for the trader. Some speculators prefer to record losses as soon as possible, others are afraid to close the deal with a profit. The foreign exchange market we all come to earn money and not to lose, but losing is still inevitable, it is necessary to understand what they may be and how to treat them.
The loss of the capital account can be brief associated with the loss in the next deal. In this case, the continuation trade should help in this question, nothing less, to withdraw the account in profit, if, of course, used the trading system itself is profitable.
The loss of the Deposit can be full associated with drain the entire account. In this case, the relation to an event is significantly different from the first situation. We are talking not about the usual damage that can occur in the process of trading, and a complete loss of capital. The trader can regard this development as inability to trade or the presence of serious errors in their work on Forex.
Mistakes traders after getting loss
Currency speculator comes to market to make, and it is therefore painful to perceive even a small loss during the trade. Despite the fact that the minus closes the very small number of positions, one is still trying different ways to get rid of losses, for example:
• to wait out the losses
• do the averaging
• to use the martingale
• apply the hedging strategy
• set breakeven
Waiting out the losses looks like a refusal to commit minus deals. He's waiting for you when the market price will return at least to the point where the position was opened to not reduce your Deposit.
The averaging is expressed in the opening of new positions aimed in the same direction as the first trade if the price goes against the expectations of the speculator.
Martingale represents an increase of the amount of each subsequent transaction. The trader can try this way to quickly regain what was lost as a result of previous transactions and to capitalize on this.
By locking a merchant stops the growth of loss for the position open in the market opposite position of the same volume as that of the transaction that lockeroom. In this case, planning to wait for the market situation, which to him is more understandable, that would get rid of counter positions at a time.
Breakeven is a moving the Stop Loss order at the price of opening the position. People can try as soon as possible to make this action to protect the account from possible losses. However, such upgrades are position can also significantly reduce the yield of the Deposit.
Mental attitude while getting losses
Loss of funds while trading should not become the cause of new problems. The irritation, the desire to win, lead to additional psychological pressure on the trader, whose actions in the market will become more accurate. The mistake of the trader to continue trading if it already felt the emotional excitement.
When testing trading systems that the speculator can observe the division of all transactions into profitable and unprofitable. Quality manufacturing can be considered one that in the summation of all income and losses will show a steady growth of the Deposit. Thus, we can conclude that in itself the negative results of some operations is not decisive of the final result.
Fully losses can not be avoided even trying to defend the capital controversial methods reported above. Attempts to get rid of losing trades, resulting in increased risk of losing a significant amount or all of the capital account. Here it is mentioned that "best is the enemy of good."
System testing allows to assess the potential drawdown in the trade, and to imagine what can be lost, at least their order. In the process, encountering bad times, the trader will be psychologically prepared to them, if you remember, that when testing the same happened something like that, but then trade had stabilized.
Mainly, information about the work, which uses a Stop Loss order. Then the loss is limited to, and become inevitable. However, this should not scare currency speculators, if his trading system is really worth it.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 309
| Rating: 0.0/0 |
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