Forex Day Trading – Accepting Losing Trades

Forex Day Trading – Accepting Profit Drawdowns and Losing Trades

Whether a trader has years of experience, is using the “holy grail” trading system or is the luckiest person on the face of the earth, there’s one aspect of the Forex market that simply can not be avoided, losing trades. Losing trades occur when the market moves so far against you that you either need to close your position of your stop loss rate closes it for you for damage control purposes.

So we know losing trades are inevitably going to occur, the important thing is that you deal with them correctly. After losing money on a trade, don’t get flustered or worried, just brush it off and begin to analyze what happened. Depending on your situation, following this step and choosing an option will help set you back on the right track.

First, determine what happened and what went wrong.

Was your market analysis correct? Did you follow the trend using a method that has worked for you in the past? Did you follow trading signals provided by a system your using or did you ignore them? Were you using a trading strategy that you’re comfortable with?

Option 1: Stick with your current strategy

If the trading strategy, system or analysis you were using has worked for you in the past, you will probably want to continue to do the same thing you’ve always done. As we said earlier, losing trades do occur even with the best strategies or if your strategy is tested & proven, brush off the loss and, when you’re ready, place your next order.

Option 2: It’s time for a change

While a losing trade can be a fluke, it can also be a sign that the strategy you’re using isn’t effective and could actually cause you to lose more money in the long run. Review the method you’ve been using and, if you believe it’s time for a change, take action. Have a look at trading systems & automatic signal services that are proven to work, test new strategies with a demo account or small deposit and, most importantly, make sure your new strategy is effective before using it in the open market with a real account.

Losing trades can be a setback for any trader, handling them the right way can mean more money trading and, in the long run, can put you farther ahead in Forex than you could ever imagine.

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