Describe your way to "save" a bad trade | Forex Factory

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Describe your way to "save" a bad trade

  • #1
  • First Post: Apr 17, 2014 12:25pm Apr 17, 2014 12:25pm
First of all, sorry for my English. It's not my main language..
To the point. Just thinking, instead of closing bad trade, maybe we could some how "save" them and ended up still having profit..
So, please describe your way to "save" bad trade..

thanks in advance...
  • #2
  • Apr 17, 2014 1:28pm Apr 17, 2014 1:28pm
1) if it ends up in profit then it's not a bad trade
2) a bad trade that is cut early for a small loss is not a bad trade.
3) an open bad trade that keeps on growing worse is a bad trade
Therefore if 2) was not done ==> how to save a bad trade:
a) keep the bets small
b) offset the huge bad trade with good trades until gone
  • #3
  • Apr 17, 2014 2:27pm Apr 17, 2014 2:27pm
Just get out lol
  • #4
  • Apr 17, 2014 3:12pm Apr 17, 2014 3:12pm
Get out on pullback. It may reduce loss, breakeven, or generate small profit. You have to evaluate the situation from the perspective of entering a new trade in the direction of the open trade at the point where you recognized the trade as bad. In absence of satisfactory conditions, get out.
  • #5
  • Apr 17, 2014 4:32pm Apr 17, 2014 4:32pm
Once you realise you made a mistake close the trade, don't hope it will change, hope will empty your account.
  • #6
  • Apr 17, 2014 5:02pm Apr 17, 2014 5:02pm
Have rules in place to identify when trades are closed whether profitable or for a loss. Losing trades aren't bad trades as long as your system accounts for them. Bad trades are those you won't close because of lack of discipline and/or a proper system that accounts for closing trades at a loss.

What needs to be "saved" isn't the trade but your account if you can't or won't close a loser.
  • #7
  • Apr 17, 2014 7:18pm Apr 17, 2014 7:18pm
Firstly, find out why it is a bad trade. Did you misunderstand some Fundamental issue, or misinterpret the charts? Learn from the mistake.
Stop loss prevents huge losses; and stops a margin call from your broker; and stops your account from closing.
NEVER leave a loosing position open in the false hope that it will eventually make a gain.
Everyone of us makes a loss - just learn from it and move on.

Happy Trading!
  • #8
  • Apr 17, 2014 7:35pm Apr 17, 2014 7:35pm
the only bad trade that exists is one that goes against your rules. Its a fact that trades don't work out, close the trade per your rules and move on, and don't be a baby about it. If you entered the trade based on your rules it was a good trade, it just did not work out. All this talk about figuring out why the trade did not work is complete bull, the market does what it wants to do irrespective of your little piss ant trade. Find a set of rules that produce a positive expectancy and trade it, don't get wrapped around the axle over a trade that did not work out.
  • #9
  • Apr 17, 2014 7:39pm Apr 17, 2014 7:39pm
Focus on the winners, not the loosers. If a trade goes well, buy some more. If a trade goes wrong then to hell with it, get out early, waiting for a bad trade to turn direction is a sure road to desaster. I'd try to keep loosers low and not trying to save them somehow, you can spend your time doing profitable things or hoping for luck, most probably not both.
  • #10
  • Apr 18, 2014 12:02am Apr 18, 2014 12:02am
Quoting irfan.zee01
First of all, sorry for my English. It's not my main language.. To the point. Just thinking, instead of closing bad trade, maybe we could some how "save" them and ended up still having profit.. So, please describe your way to "save" bad trade.. thanks in advance...
For me, a trade is bad as I misread the signals. In that case, I abandon it and wear the loss. It all thus depends on whether you know why your trade has gone bad.
The road to pipland is arduous and fraught with challenge.
  • #11
  • Apr 18, 2014 12:23am Apr 18, 2014 12:23am
*right click, "save target as", usually to desktop under folder entitled "dude wtf did you done now"
Howlin' at the Moon on the Roof
  • #12
  • Apr 18, 2014 1:39am Apr 18, 2014 1:39am
Keep huge amount in your account, never close bad trade but keep averaging it in your direction, close the bucket when you make profit from all trades, and you will never have a bad trade.
  • #13
  • Apr 18, 2014 3:15am Apr 18, 2014 3:15am
Just let it hit the stop.

Losses are never fun, but averaging down to avoid a loss, or holding onto a large open negative position hoping the price will come back might work on a few occasions, but eventually it'll end in disaster.

Personally I trade with a target 3x the stop, so I can endure a few losses without too much stress. Another rule I have, is that I stop trading for that session once I get a stop. This protects me from getting multiple stops in one trade session which could be due to bad price action, or me not trading that well on a given day.
  • #14
  • Apr 21, 2014 5:32am Apr 21, 2014 5:32am
Quoting endroute
the only bad trade that exists is one that goes against your rules. Its a fact that trades don't work out, close the trade per your rules and move on, and don't be a baby about it. If you entered the trade based on your rules it was a good trade, it just did not work out. All this talk about figuring out why the trade did not work is complete bull, the market does what it wants to do irrespective of your little piss ant trade. Find a set of rules that produce a positive expectancy and trade it, don't get wrapped around the axle over a trade that...
Pooah , yes , incredible !
You īre absolutely right !
If I enter a trade thatīs not " in the rules " and it makes green or red pips .. itīs a bad trade .
Day by day sticking to the rules brings green pips , almost every week .
Only with wrong entries I can blow off the account and my menthality ..
But itīs not easy , I cannot sit all day next to the screen and wait for the perfect situp ..
After some hours I better close my Mt4 and do anything else , before my itchy fingers pull the trigger on a bad entry .
Risiko birgt immer auch die Chance.
  • #15
  • Apr 21, 2014 8:27am Apr 21, 2014 8:27am
Quoting Sesamstrasse
{quote} Pooah , yes , incredible ! You īre absolutely right ! If I enter a trade thatīs not " in the rules " and it makes green or red pips .. itīs a bad trade . Day by day sticking to the rules brings green pips , almost every week . Only with wrong entries I can blow off the account and my menthality .. But itīs not easy , I cannot sit all day next to the screen and wait for the perfect situp .. After some hours I better close my Mt4 and do anything else , before my itchy fingers pull the trigger on a bad entry .

Bad entries aren't what do the damage. It's bad exists. IE not exiting early on losers and exiting too early on winners.
  • #16
  • Apr 21, 2014 9:25am Apr 21, 2014 9:25am
Not every profit ends as winner. And not every winner is a good trade and not every loosing trade is a bad trade. You cant make money on every trade. First of all, you have to know yourself to build a good system that fits your personality. Dont try to avoid loosing trades. Create rules and then stick to them. It is the only way how to succed in this business.

Create a plan. And trade that plan...
Lose small, win BIG
  • #17
  • Apr 21, 2014 9:33am Apr 21, 2014 9:33am
Quoting FX-View
Keep huge amount in your account, never close bad trade but keep averaging it in your direction, close the bucket when you make profit from all trades, and you will never have a bad trade.
Why just not close but plant yourself to sit on a ticking bomb? One day itīll blow for sure.
Do you risk your life to pick a coin from a railroad if you see a train coming?
  • #18
  • Edited 5:40pm Apr 21, 2014 1:06pm | Edited 5:40pm
Quoting JR97
{quote} Bad entries aren't what do the damage. It's bad exists. IE not exiting early on losers and exiting too early on winners.
Nono !
If a bad entry becomes green , itīs still a bad entry fare away from the rules.
Risiko birgt immer auch die Chance.
  • #19
  • Apr 21, 2014 2:30pm Apr 21, 2014 2:30pm
one click.
There is a winner and a loser, nothing in between.
  • #20
  • Apr 21, 2014 2:50pm Apr 21, 2014 2:50pm
- When kite start falling, you should release it
My Best Trade is Next Trade!
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