3 Reasons Why You Are Taking Too Many Losses Forex Trading

3 Reasons Why You Are Taking Too Many Losses Forex Trading

Forex Trading is a numbers game. Do you have more 1’s than 0’s? Losses are a normal part of trading, and the sooner you understand that the sooner you will be affected less by them and finally learn to MANAGE them.

Not AVOID them. There’s a difference.

You Don't Have A Strategy

9 Times out of 10, this is every Forex-newbies problem. Yes! You’re losing money because you don’t have a plan to make money.

You’re just paying to play at that point. Forex Trading or Stock Trading or trading of any kind for that matter can get very expensive very quickly if you don’t have a plan in place that is proven to make money.

It’s much better to learn how to execute Forex trades on demo first and then put a strategy together before going live. I can say that because I’ve experienced Forex trading “the hard way.”

It wasn’t fun.

I was lucky, though, because I learned how to trade with small amounts of capital that I didn’t mind losing, although it hurt when I did.

I had no responsibilities, no dependents. So there was much less downside risk.

For anybody who knows they can’t pull that off, take your time and study. You will thank yourself 1000 times over, there is no rush, and the Forex market is not going anywhere.

Well… Get yourself a strategy. You will buy a course that has a strategy that works for you, or you are going to have to create your own.

Creating your own is more challenging and takes much more time to see the fruits of than buying a strategy/course would.

That being said, make sure you are buying a course from a trusted mentor, which is easier said than done, as some of you reading this probably know.

Forex Trading can be a nightmare if you’re in a rush.

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You Aren't Following Your Strategy

If you already have a proven trading strategy, then why are you not making money?

Most likely because you’re not following it. Yeah, I mean, you take the signals that the strategy prints but only those that feel right?

That is a recipe for taking many losses and missing out on many wins.

Keep a tight leash on your need to be right. Especially if you already have a low win rate strategy.

Being right should be the last thing on your mind if that’s the case.

Instead. “Grade” yourself on how well you were able to stick to your plan every week.

That should be your measure of success. Did I trade my plan/strategy TO THE TEE? You should be scoring 100% every week to reap the fruits of a profitable strategy.

CONSISTENCY is a big thing in Forex Trading and trading in general. Like I said, Forex is a numbers game.

If losses are guaranteed, that means you can’t be trying to be right every time.

You can win by being right MOST of the time OR by your winners being much bigger than your losers if you are wrong more times than not.

Either way, you have to stick to the plan.

Your Strategy Just Doesn't Work

I know that’s the last thing anybody wants to believe, and it’s only natural.

When I say your strategy doesn’t work, I don’t just mean it never worked at all.

I mean, it may have worked at one point in time and maybe just not now. You can read more on What To Do When Your Strategy Stops Working Here.

It’s also possible the strategy you are trying to trade never worked at all if you bought a dodgy Forex Trading Course that promised you 1000% in a week.

I’ve had my strategy stop working before, and I had to adapt it to current market conditions. It’s not the end of the world.

If you are a monk in your execution and you’ve given yourself enough sample size to be profitable, and you still aren’t, then back to the drawing board.

At the end of the day, that’s all profitable trading is. To try and find an edge in the Forex market and use that edge to make money in the long term.

There are some strategies to check out here that you can use as BUILDING Blocks to a full-fledged trading system.

Most Indicators or Patterns do not work when you trade them alone.

But if you build a “playbook,” so to speak. You could end up with something that brings home the bread, if you know what I mean.

So keep pushing on until you find what works for you.

Don’t bet the farm.

Don’t lose your shirt.

Cut the L.

Keep the W.

Happy Trading.

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Lunga Shabangu

Lunga Shabangu

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