When you start your trading career you might have many big dreams. It’s very normal to think that you will have luxury, houses and in the weekend you will have gorgeous parties to attend. In fact, the real life professional traders are leading their life to the full and being a novice trader we can’t really imagine what it feels like to secure our financial freedom. But does this thing mean that the professional traders are always winning trades? Don’t be surprised to hear the answer. No in this world can have 100% accuracy level in Forex trading? Every trader has to face losing trades very often and sometimes the consecutive losing trades can be very frustrating. But this where the professional traders are one step ahead from the normal retail traders. They always consider their losing trades as a part of their operating cost. There is no business in the world where you will have ensured a profit. In the world of finance you need to learn the art of managing risk. Now we will give you some amazing tips which will help you to deal with your losing trades.
Always trade to lose
Sounds really weird? But this is the first thing that you need to make yourself understand. Most of the retail traders in the online trading world participate in this market to make a profit. They simply don’t have the mental preparation that losing is just a part of the trader’s life. So when you first trading the market you need to have the mental trade setup that you will face losing trades. When you open a trade never consider its potential gain rather assess the risk percentage level. If the trade goes wrong then make sure that you are not losing more than 2 percent of your account capital. And if everything goes in order then you make a profit from your trade.
Read psychological books
Reading books on psychology can greatly help you to achieve mental stability. The novice traders often get frustrated after seeing few consecutive loss in their online trading account. But in this investment world, you need to make yourself prepare to accept a series of loss. If you lose 10 trades in a row make sure that you are not losing more then20% of account capital. So how do we make a profit in such critical market? The answer remains within your money management skill. If you risk $100 in a certain trade then it’s your duty to ensure that if the trade goes in favor of you then you will be making at least $200.In trading terminology, it is often known as risk reward ratio. Before you place any trade you need to consider the risk reward ratio. The higher the reward ratio is, the better chance you will have to make money in the long run. But following this simple rule is not simple. You need to train your mind extensively by reading different books and articles on advance money management policy. Some expert traders often consider the human mind as the main culprit for losing money. Being human we get emotional by seeing the price movement thus start executing random trades without any rational logic.
Always trade in the higher time frame
The Forex is always favored the market trend. All the professional traders always execute their trade in favor of the long term market trend and it’s really very easy to make money by trend trading. However, at times, you will see that you are facing too many losing trades. All your trades will hit the stop loss and you will be wondering to find the exact reason. To solve this problem you need to look at your trading time frame. If you trade the lower time frame then it’s very normal that you will have losing trades very frequently. But when you switch back to the higher time frame you will see a dramatic improvement in your trading performance.