Losing trades is very common in the trading business. The naïve traders are always losing money since they don’t know the perfect way to accept the losing orders. Most of the time, they start taking big risks and try to recover the loss. But this is not the perfect way to make consistent profit from this market. If you intend to make your life better, you must learn to accept losing trades even though human minds are not programmed to accept loss. They are always trying for the big winners and eventually losing a decent portion of their investment.
So, how can we prepare yourself to deal with the losing trades? Well, the answer greatly depends on your trading skills. Follow the rules of this article and you will be able to make a decent profit by accepting losing orders.
Trade with a small lot
The first thing that you should do is to trade the market with a small lot. If you trade like the aggressive traders in Singapore, you may secure some big profit but considering the overall picture of this market, you are going to blow up the trading account. Being a currency trader, you should always think about the conservative method at trading. Educate yourself about lot size calculations so that you don’t have to take a high risk to recover the loss. Losing money in the Forex market is a very natural process. But if you start executing orders with a small lot, it’s just a matter of time until you learn about the simple process of trading.
Trade with a low leverage account
The naïve traders fail to accept losing trades in the CFD trading industry since they always use a high leverage account. The use of high leverage greatly increases the risk exposure. Before you start taking things with aggression, you need to learn the importance of leverage. It can boost the profit factors and also increase the risk exposure to a great extent. Unless you are certain about your trading strategy, you should never try to earn more money by using a leverage trading account. Leverage can be very fatal and it can cost your trading capital. Being a fulltime trader, you need to read more about the use of leverage so that you can make a big profit at low risk.
Breaking the winning stead
New traders often become overly confident with their trading method after winning too many trades. They try to earn huge profits by increasing the risk factors. But they forget the fact that trading is more like an art. You can’t win all the trades and losing trades are inevitable. If you want to make a big profit, you must prepare yourself to lose some trades. Never lose confidence once you start losing money. Try to analyze the higher time frame data so that you can easily make a big profit by executing high-quality trades. Think about your long term goals and use the conservative trading method to improve your trading style.
Use advanced risk management policy
You need to use an advanced risk management policy to improve your trading skills. Naïve traders are always trying to earn huge money by pushing themselves to the limit. If you want to change your life, make sure you are not pushing yourself in the line of fire. Try to use the conservative trading method so that you don’t have to lose a big portion of your trading capital. Being a naïve trader in Singapore, you might feel the urge the increase the risk exposure to recover the loss. But by doing so you are going to pose a great risk to your career. Think about the elite traders at Saxo. They never trade with high risk even though they have enough capital to trade with big volume. Learn to play it safe and you won’t have trouble becoming a skilled trader.