Reducing losses on Forex.

Most traders try to make money on Forex using a one-sided approach to trading; they expect to improve their financial results only by increasing profits, without paying any attention to the amount of losses.

It is loss management that is sometimes the decisive factor that radically changes the existing situation; it is a rather complex process, but always gives an excellent result.

The main thing is to use the right approach to this issue and not limit yourself to stop orders alone.

You can reduce losses in the following ways:

1. We introduce restrictions on losses - losses from one transaction should not be more than 2-3%, it is clear that the dynamics of the trend should also be taken into account here, so most likely you will have to adjust the next parameter.

2. Transaction size - the optimal ratio of the deposit to the volume of the opened position is 1:10, only in this case you will be able to fully manage losses, while the leverage can be much greater.

3. Change the trading time - sometimes it is the Forex session that causes an excessive amount of losses.

Since currency pairs behave differently in each session, a different time frame may be more suitable for your trading style. This rule has been confirmed in practice more than once. 4. Another time frame - if you previously traded on H1, try scalping , or vice versa, change short-term trading to long-term transactions, experiments always open up new opportunities.

5. Number of transactions - focus more on quality rather than on the number of transactions performed; some trading giants wait for several weeks for the right moment to make a successful transaction.

Such a convenient moment can be either an important event or a certain market situation. 6. Take profit - if you set a stop loss at 20 points, and the price has moved by 50, do not be lazy to take profit by moving the stop order to the break-even zone.

7. Control open positions - you should not completely rely on stop orders, try to log into the trading terminal more often, monitor changes in the market, this will allow you to notice important trends in a timely manner and decide to close the transaction early or, conversely, extend its lifespan.

Trading is based on a lot of little things that are formed into one system; it is the system that allows you to conduct profitable trading on Forex or other financial markets.