”;
You have to remember that the psychological of human is very reactive.
We humans are very emotional when it comes to forex trading. In
mathematics, we can say that we only risk a trade with 2%, but it can
accumulate can becomes 5% the next time you have another trade . Why?
This is because most newbies will make a mistake of overtrading or have
the mindset of trying to revenge the losses they incurred. Before they
knew it, they already lost much of their trading account. So what you
can do is to take a break from the forex market if you have few losing
trades in a row.
1. Kill Your Losing Streak – If you have noticed, losing streaks
usually start off with small losses. It may be a little mistake that
you have made in technical analysis or that particular day is just a
day with bad luck, which leads to your lost forex trade. Then from
there, you want to try again and hope to recoup the losses. But the
losses amplifies and everything repeats again. In order to reduce
losing streaks, you have to cut the losing streaks short and close the
charts to take a rest. This will prevent you from wanting to trade
more, leading to more mistakes made.
2. Take a Break From Trading and Clear Your Head – You might lose your
concentration if you stare at the forex charts for a very long time or
the losing streaks might be caused by information overload. Once you
sense that, go for a short break before coming back again to trade. You
should always look at the charts when your mind are refreshed.
3. Preserve Your Trading Capital – This is the most important forex
tips. If you have lost all your capital, then how are you going to
trade again? Always trade a small margin of your forex trading account
according to your money management rule. This will prevent you from
losing your hard earned money from making stupid mistakes.
When I was a newbie, I had some losing streaks using my demo account.
Luckily it’s not a live trading account! During then, I did not
implement any money management rule. Until when I realized that money
and risk management is a important factor for me to be successful, I
started using those rules and from then, my trading account kept
growing.
So please do not be reckless in your trading no matter what your forex
trading strategy is. Build your gains slowly and you’ll take a step to
being successful in forex trading.
Article Tags:
Losing Streaks, Forex Trading, Trading Account
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
To learn how to trade forex successfully using a simple, proven forex
trading system, download my FREE 56-page ebook at
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The author, Daniel Su, is the founder of
http://www.ForexTradingPower.com where you can get free premium forex
trading tips and resources.
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