Having just exited the market now 03092008, it is pertinent that you know how to minimize your loses trading the forex market. For one i was short the GBPUSD pair at about 8.45AM meta trader time and that is 6.45 GMT. I placed my trade short @1.7740 and when it rallied up a bit @1.7762, I also placed a pending sell stop order @1.7735, this pair came down to 1.7666 a whooping 239 pips in all but do you know what happened later? Actually, you might think i was foolish, I personally thought i was foolish later because at that point my indicator said to take profit but i wanted the trade to hit the next support that was @1.7650 how foolish i was not following the chart but my emotions and i never did use a stop loss. The trade finally rallied with the GBPUSD climbing up to 1.7817 a massive over 200 pips loss later. You can imagine going from pure profits to extreme loses. The next step would have been to close the trade and lick my wounds but it is at this point you have to employ discretionary trade. I made lots of mistakes trying to gain back my losses but what actually saw me through was my ability not to take an emotional action at the heat of the scene. This paid off as i finally was able to take 83 pips out of the market.
Note: I still applied emotional trading or I would have gone out with a total of 151 pips.
The forex market responds to risk takers and those that are able to hold their fort even when they’ve made mistakes.
BE QUICK IN YOUR DECISIONS BUT BE A DISCRETIONARY TRADER AND YOU’LL LEARN TO BE SUCCESSFUL TRADING THE FOREX MARKET.
Points to note:
Ensure you pick a pair and understand how they behave towards each other.
Ensure you have a trading system you can trust your hard earned cash with.
Learn to take emotions out of your trades.
Be discretionary in trading.
Believe in yourself and your trading system.
When you have to take your profits do and try not to be greedy.
If you’ve learnt something from this and you require some other trading tips then you can contact me on forex2pavillion@gmail.com or call +2348054233909, +2348029074194 or +17388021.
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