Is it possible to trade Forex without drawdowns and losses?

Anyone who has been trading on the Forex currency exchange for more than a few months knows that the main troubles for a trader are caused by drawdowns and withdrawals of the deposit .

It is drawdowns that spoil the mood, and complete loss of the deposit that forces you to start all over again.

Moreover, many simply cannot imagine their trading without these two events, not even imagining how easy it is to start trading without major losses.

Which not only cause depression, but also become the main reason for making new mistakes.

In fact, if you put aside force majeure circumstances, reducing losses to a minimum is quite simple, the main thing is to follow simple rules and moderate your appetites a little.

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To prevent your deposit from being drained:

• Always close trades if you receive more than 10% loss. Don't move your feet and don't expect a miracle.

• Try not to leave open orders on holidays and weekends. Since after a price gap occurs, even a stop loss will not save you.

• Select your leverage so that a loss of a couple of points does not leave you without funds. Stable trading, even with a small profit, will always allow you to earn more than a risky strategy.

• Do not use advisors that use risky strategies, for example, martingale .

• Stop after 3 unsuccessful trades. If something goes wrong, you need to first find out the reason, and not increase losses.

• Stop loss is a mandatory component of trading.

In fact, only novice traders lose their deposits, since modern trading terminal tools make it possible to avoid this phenomenon.

Combating drawdowns is much more difficult, because here you need to give up hope for excess profits.

• You cannot trade without drawdowns using large leverage, you will have to choose either your stop loss will be triggered at the slightest pullback or in case of a reversal you will lose a large percentage of your deposit.

• Using hedging can be a good alternative to stop loss as it gives you a little more freedom when choosing leverage.

• Switching to a shorter time frame will allow you to change the stop parameters, thereby reducing the size of losses and thus not turning them into a drawdown.

• Trade crypto currencies only on the shortest time periods, which is why the biggest drawdowns have recently occurred. There is nothing worse than a long-term transaction in cryptocurrencies , and even with the maximum available leverage.

Also relevant here are the rules that reduce the likelihood of losing the deposit and were given above.

In order to further reduce risks, try not to keep all available funds in the account, but only those that are necessary to support transactions. We can say that the main reason for the occurrence of noticeable losses is not correct money management, or rather its absence. Read more about money management in Forex - http://time-forex.com/praktika/risk-menedgment

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