how do I maximize my profit and minimize loss? | Forex Factory

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how do I maximize my profit and minimize loss?

  • #1
  • First Post: Apr 11, 2014 8:19am Apr 11, 2014 8:19am
Am a new trader and I would want to know how I can maximize my profit and minimize my loos, can any one please tell me how to go about this? Thank you very much.
  • #2
  • Apr 11, 2014 12:19pm Apr 11, 2014 12:19pm
no one can tell you how to exit with more profits or exit at the peak of the trend.
Have you read "Trade Like A Casino" by Richard Weissman?

There are a list of checklist that question your understanding of your system. If you are a newbie. Look for a mechanical trading system that has an overall profit rate.

Only when you are profitable and trading for at least 3 years or whichever comes first then you are granted the permission to trade discretionary.

Look out for patterns that repeat itself over and over again.
Forex Price Action Hacked - Price Action Rockstar
  • #3
  • Apr 12, 2014 9:50am Apr 12, 2014 9:50am
Additionaly to what david_akc said I find it generally a good idea to build positions over time and lock my potential winners in by moving my stop loss into the winning zone (or using an automatic trailing stop). Enter the trade with a reasonable volume, ones you're in the winning zone buy some more, wait a bit, move your stop loss and so on ...

If the trade goes wrong early in the trade your losses are low as your volume was low and over time you end up with a bigger position but without exposing you to a greater risk of loosing money.
  • #4
  • Apr 14, 2014 9:54am Apr 14, 2014 9:54am
A good method I found for maximizing profits is by using a trailing stop loss once it has reached my target profit.

For example if I reached my target profit but felt that it could potentially rise higher, and I could make more of a profit, I'll set a trailing stop loss at that point, so if it goes up further I make money, and if it drops, the stop closes it out automatically.
  • #5
  • Apr 14, 2014 3:59pm Apr 14, 2014 3:59pm
Sell half your trade when it's as much in pip profit as it would be a loss when it hits your SL, then take part profits if your trade keeps going.
  • #6
  • Apr 14, 2014 6:36pm Apr 14, 2014 6:36pm
Quoting blesssing23
Am a new trader and I would want to know how I can maximize my profit and minimize my loos, can any one please tell me how to go about this? Thank you very much.
1:2
  • #7
  • Apr 18, 2014 11:28pm Apr 18, 2014 11:28pm
Focus on learning how and why price moves, and you will make money.
Focus on how to make money, and you will go nowhere.
  • #8
  • Apr 19, 2014 12:32am Apr 19, 2014 12:32am
Quoting blesssing23
Am a new trader and I would want to know how I can maximize my profit and minimize my loos, can any one please tell me how to go about this? Thank you very much.
Try to be profitable before you think about max profit.There is slight difference.
Before you run learn to walk without tripping up on every step.
In short like Hanover said focus on the why's.New traders think about profits seasoned pro traders always think about Risk first.Control risk you have an edge and without edge don't even think about profits.
In trading, you have to be defensive and aggressive at the same time
  • #9
  • Apr 19, 2014 12:51am Apr 19, 2014 12:51am
Quoting flinx
A good method I found for maximizing profits is by using a trailing stop loss once it has reached my target profit. For example if I reached my target profit but felt that it could potentially rise higher, and I could make more of a profit, I'll set a trailing stop loss at that point, so if it goes up further I make money, and if it drops, the stop closes it out automatically.
This is exactly what we all do and as for maximizing gains and minimizing loss, check out for patterns, pay attention to PA, ..what Hanover said is spot on.
  • #10
  • Apr 19, 2014 5:36am Apr 19, 2014 5:36am
My best advice would probably be to only trade setups which you have absolute conviction with - i.e. setups you are almost certain are going to go in the direction you intend it to.

How do you judge this? Confluence. The more confluence you have on a setup, the more confident you are. If you are questioning whether a certain setup should be entered, chances are that it isn't good and you shouldn't enter it.
  • #11
  • Apr 19, 2014 12:37pm Apr 19, 2014 12:37pm
Quoting hanover
Focus on learning how and why price moves, and you will make money. Focus on how to make money, and you will go nowhere.
Great point! One addition, though. Once you've learned how and why the price moves, get into the habit of increasing your position once the price starts moving in the direction of your initial trade. You could try cost-averaging on your way down, but you're going to end up in the gutter emotionally and financially. Habits are really important in trading so you need to make sure not to pick up a lot of bad habits while you're still learning. The practical side of this advice is that you need to take fewer trades then you'd like and keep a journal for every trade you took.
If you don't risk, you don't ever have to lose.
  • #12
  • Apr 24, 2014 3:02pm Apr 24, 2014 3:02pm
Quoting blesssing23
Am a new trader and I would want to know how I can maximize my profit and minimize my loos, can any one please tell me how to go about this? Thank you very much.
1. Learn price action, support/resistance and volatility breakouts.
2. Learn position sizing and never risk more than 1% of your account on a single trade before you are sufficiently experienced and confident.
3. Concede that price cannot be predicted and the market can do anything.
4. Learn to take losses as easily as profits.
5. Be patient, disciplined and organized.
6. Never stop learning especially from your failures.
The trader IS the holy grail.
  • #13
  • Apr 25, 2014 3:44am Apr 25, 2014 3:44am
Proper money management, high probability trading setups along with the discipline are the keys to achieve better results in forex.
  • #14
  • Jun 2, 2016 9:24pm Jun 2, 2016 9:24pm
To maximize profits, then we just need to continue to hone the skills of a good trading so that we more refined analysis capabilities and we need to be able to use SL and TP when trading to minimize the risk well
  • #15
  • Jun 16, 2016 11:38pm Jun 16, 2016 11:38pm
Change your leverage to 25:1 to stop overtrading
  • #16
  • Jun 21, 2016 3:10pm Jun 21, 2016 3:10pm
I focus on discipline to be patient to wait for perfect entries so that I dont end up in the middle of a ranging market. Also, I move my stop to within 32 pips of the current price when I am in profit so that I either break even (if the market reverses) or gain the maximum amount of pips the market gives out that day. Doing this, I usually average about 75 pips per trade. That is an average from trades that I either broke even, lost 5 pips or so, or profited over 150 pips.
  • #17
  • Jun 23, 2016 8:00am Jun 23, 2016 8:00am
Those are simple questions with complicated answers. But you can begin by simply studying and practising. Study the theory, then practise it on a demo account. Figure out what strategy fits you the best. Figure out a trading plan. Learn about good money and risk management. Learn discipline and self-control. And so on, and so forth.
  • #18
  • Jun 24, 2016 5:29am Jun 24, 2016 5:29am
One way to maximize profit and minimize loss is to strictly & only enter trades which have good risk reward ratio. Avoid trades with bad & equal risk reward ratio.
  • #19
  • Jul 4, 2016 4:12am Jul 4, 2016 4:12am
Forex is a business that has a lot of risk and we can not separate the forex loss and therefore we need to be able to have a good risk management that will make us able to minimize the loss well. we should always use the SL and TP when trading
  • #20
  • Jul 7, 2016 11:47am Jul 7, 2016 11:47am
By sitting tight - holding longer with the prevailing trend and momentum. If your risk is 3 pips then hold with the trend for maybe 10 or more pips for a good R:R.
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