how do you overcome your losing trade?? | Forex Factory

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how do you overcome your losing trade??

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  • what do you do with lossing position?
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  • #1
  • First Post: Sep 10, 2017 2:13pm Sep 10, 2017 2:13pm
doing forex for a couple of years ... and have seen a lots of trader portfolio ..
#many close their position with loss..
# many trader let their losing trade run ...
# many trader manage them by martingle
# hedging
#grid , etc ....
how do you manage your losing trade???
  • #2
  • Sep 10, 2017 4:56pm Sep 10, 2017 4:56pm
combination of 1, 3, 4
+5: shout at my wife to live the room now!! LOL

seriously, it depends entirely on the situation.
the thing is, it most probably doesnt make a tiny different to your trading outcome, as you have your mind set to what probably you feel the best for you, and i have my mind set around what i feel the best for me.
one trades profitable with SL, another without SL...
end of the day, the only matter, do you trade profitable?
if yes, you doing the right thing. if not, you doing something wrong.
trading isnt about textbook solution, or the "best practice".

it is about making money!
there is always, always another trade!!
  • #3
  • Sep 11, 2017 12:42am Sep 11, 2017 12:42am
i wanted to know if anyone use any strategy to minimize their loss ....
  • #4
  • Sep 11, 2017 1:36am Sep 11, 2017 1:36am
Quoting sagor482
i wanted to know if anyone use any strategy to minimize their loss ....
Trade better.

Jokes aside. There isn't really much to it. You've mentioned what can already be done. The only difference there is, is to change how you trade. Examples would be taking less trades, being more selective of what trades you take, be extremely lucky, etc.
An eternal student.
  • #5
  • Sep 11, 2017 1:41am Sep 11, 2017 1:41am
grid and martingale are the same thing, "hedging" is a crazy way to close in loss.

I don't manage single trades, I basket close when I reach my % target.
  • #6
  • Sep 11, 2017 1:56am Sep 11, 2017 1:56am
Quoting sagor482
doing forex for a couple of years ... and have seen a lots of trader portfolio .. #many close their position with loss.. # many trader let their losing trade run ... # many trader manage them by martingle # hedging #grid , etc .... how do you manage your losing trade???
You have to know no one is going to have the correct entries all the time and if someone tell you he does, stay away from him. Any sane trader will tell you that it's better to close the losses when the damage is still minimal. By doing so, you will at least have the opportunity to enter trade as you have preserve your fund without being recklessly adding to your losing position.

Recognizing your mistake is part of trading life whether you like it or not.

Speaking from my own experience, I do not do well with martingale. However, I do manage to reduce my losses by hedging (and sometimes, I managed to profit out from it) and it involves careful calculation and entries.

A lot of people here will be telling you different sort of stories mainly because they have this "if I can't do it, nobody can do it" mentality. Don't let other people dictate what you should be doing to your trades. You should decide on your own and if you can't , sorry, perhaps you are not suited to trading at all.
  • #7
  • Edited 2:44am Sep 11, 2017 2:06am | Edited 2:44am
The first one without question. There is a period of planning before every trade, where I decide on the stop level too. The stop goes to the "danger zone". The danger zone is the level, which is when reached by the price means, that my plan was wrong. When it is wrong, I get out, so the damage is minimised and my capital is not tied down in losing trades. Also I'm not emotionally impacted by them.

The reason so many people fail to use stop losses is either they make an ego out of trading, and view every loss as a personal failure, or they weren't taught the proper method of placing stops, so they put them at wrong places where they are bound to be caught (either inside a trading range, or right above/below of obvious swingpoints.) Then they decide to abandon it instead.
Price and volume reveals everything. The market moves on supply and demand.
  • #8
  • Sep 11, 2017 2:09am Sep 11, 2017 2:09am
Act fast to minimize the loss. Only re-enter trade if the market conditions confirm/validate my initial analysis and setup criteria.

Trade safe and prosper.

KP
Do your homework, follow the footprints of smart money
  • #9
  • Sep 11, 2017 2:10am Sep 11, 2017 2:10am
the anatomy of a losing trade is this to me

1. hope it's gonna turn a tick before my stop
2. cuss the chart out for at least 10 minutes straight
3. get stopped. punch the wall. question my existence
4. google maps search the highest nearby bridge to jump off of
5. think what i could have done with the money i just lost
6. re evaluate the damn thing to see if i've done any mistakes in my analysis
7. watch funny youtube videos
8. i'm over my loss
buy resistance sell support
  • #10
  • Edited 3:09am Sep 11, 2017 2:50am | Edited 3:09am
Quoting sagor482
doing forex for a couple of years ... and have seen a lots of trader portfolio .. #many close their position with loss.. # many trader let their losing trade run ... # many trader manage them by martingle # hedging #grid , etc .... how do you manage your losing trade???

Stop or target. Losing is part of winning. I calculate a win/loss ratio over a large number of trade setups, I do not know which of my trades will win or lose but I know for my OTC system that in the region of 57% of them will win on a 1:1 stop/target ratio and therefore I have enough winners to carve out an edge.

I have begun to detail my approach to trading here https://www.forexfactory.com/showthread.php?t=698461
I live entirely from the growth of my personal trading account
  • #11
  • Sep 11, 2017 3:06am Sep 11, 2017 3:06am
Quoting GuyBaker
{quote} Stop or target. Losing is part of winning. I calculate a win/loss ratio over a large number of trade setups, I do not know which of my trades will win or lose but I know for my OTC system that in the region of 57% of them will win on a 1:1 stop/target ratio and therefor I have enough winners to carve out an edge. I have begun to detail my approach to trading here https://www.forexfactory.com/showthread.php?t=698461
Attached Image
beware
people leave, but this thread will go on for ever
  • #12
  • Sep 11, 2017 3:08am Sep 11, 2017 3:08am
Quoting Aussi
{quote} {image} beware

Beware of what? blokes in funny hats?
I live entirely from the growth of my personal trading account
  • #13
  • Sep 11, 2017 3:15am Sep 11, 2017 3:15am
Quoting GuyBaker
{quote} Beware of what? blokes in funny hats?
It is not just a funny block in a hat. Clearly you do not understand this painting. Here is something to help:

https://en.wikipedia.org/wiki/Sta%C5%84czyk

"He is remembered as a man of great intelligence and a political philosopher gifted with formidable insight into Poland's current and future situation. He used his job to criticize and warn his contemporaries by the use of satire. His witty jokes often pertained to current political or court matters. Stańczyk's remarks and jokes were preserved by numerous contemporary writers and historians, including Łukasz Górnicki, Jan Kochanowski, Marcin Kromer, and Mikołaj Rej who praised him for fighting hypocrisy in the name of truth. "
  • #14
  • Sep 11, 2017 3:16am Sep 11, 2017 3:16am
You manage the losing trade by closing it?
Invincibility lies in the defence; the possibility of victory in the attack
  • #15
  • Sep 11, 2017 3:20am Sep 11, 2017 3:20am
Quoting jdieieh
{quote} It is not just a funny block in a hat. Clearly you do not understand this painting. Here is something to help: https://en.wikipedia.org/wiki/Sta%C5%84czyk "He is remembered as a man of great intelligence and a political philosopher gifted with formidable insight into Poland's current and future situation. He used his job to criticize and warn his contemporaries by the use of satire. His witty jokes often pertained to current political or court...

ah, so I am being likened to this genius and I should take it as a compliment, thanks Aussi )
I live entirely from the growth of my personal trading account
  • #16
  • Sep 11, 2017 3:23am Sep 11, 2017 3:23am
Quoting BBalazs
You manage the losing trade by closing it?

More that for me trades are set based on criteria I have determined using significant statistical analysis, and so some win some lose, until they close one way or the other I do not know what the outcome of each individual trade will be.
I live entirely from the growth of my personal trading account
  • #17
  • Sep 11, 2017 3:27am Sep 11, 2017 3:27am
Well, I don’t try to recover my losing trades instantly! It takes time! Basically, I try my recover losing trades by good trade’s position! In addition, I close all of my trades automatically according to my SL and TP position!
  • #18
  • Sep 11, 2017 3:33am Sep 11, 2017 3:33am
Quoting GuyBaker
{quote} More that for me trades are set based on criteria I have determined using significant statistical analysis, and so some win some lose, until they close one way or the other I do not know what the outcome of each individual trade will be.
Indeed. The trick is to make more when you do win than the amount that you lose on the losing trades. Either that, or have a high win ratio, which is pretty difficult to pull off in my opinion.
Invincibility lies in the defence; the possibility of victory in the attack
  • #19
  • Sep 11, 2017 3:34am Sep 11, 2017 3:34am
"Losses are just losses."

Cut your losses and let your profits run.
  • #20
  • Sep 11, 2017 3:53am Sep 11, 2017 3:53am
Quoting BBalazs
{quote} Indeed. The trick is to make more when you do win than the amount that you lose on the losing trades. Either that, or have a high win ratio, which is pretty difficult to pull off in my opinion.

The OTC system I have in forward test right now has 1:1 stop/target ratio, about 57% of the trades are winners
I live entirely from the growth of my personal trading account
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