How to deal with your losing trades

We all know that trading is the most lucrative profession in today’s world. Every day the number of retail traders is increasing in the global market. Professional brokerage firm like Saxo is now offering a high leverage trading account to the Aussie traders which makes trading much easier. Though this market is extremely profitable yet the number losers is extremely high in the investment world. If you do the market you will be surprised to see that only 5% of the traders are able to make a consistent profit. So how do we become one of them? The answer is really simple. You have to deal with your losing trades just like the professional Aussie traders. If you act like a child and try to recover your trading loss immediately, you are not going to make any real progress. After reading this article you will have a clear idea how the expert deals with their trading loss.

Limit your trade execution

Every professional trader has a trade threshold level in their trade execution. You need to limit the number trade you can take in each day. For instance, most of the expert Aussie traders never place more than 4 trades in a day. On the contrary, the novice traders are always placing near about 10 trades in a single day. This is not the perfect way to trade this market. If you are completely new to this trading industry you should never place more than 2 trades in a day. If you lose two trades in a row that’s absolutely fine. Take the day off since you know that you can’t place trade event though you have enough money to trade.

The simple rule of 5%

As a trader understanding the proper risk management factor is very crucial to your trading success. If you risk more than 3-5% in each day, you are going to blow your entire trading account. But just have a look at the professional traders in Australia. They never take more than5% risk in any single day. Yes, you have read it correctly. They consider the day to measure their risk exposure level. What’s the point of risk management if you place 10 trades in a day? Even with 2% risk, you will be risking 10% of your account capital. So you need to think smart or else this market is going to crush you like a nut.

Diversify your risk factors

Diversifying your risk factors in the Forex trading industry is very crucial. You will never see an egg seller keeping their all eggs in a single basket. They know very well keeping all the eggs in the single basket might cause him to lose all his eggs. So he always keeps them separate even though he can afford to keep all of them in the same place. Similarly, you need to look at different pair’s price movement in your trading platform. Never trade a single currency pair and risk all your money in a single trade. You need to diversify your risk factor to ensure your trading safety.

Embrace the losing trades

Now we will tell you a hard fact about the trading profession. No matter what you do, you will always have to face losing trades. It’s the nature of this market. Being a currency trader, you can’t expect to win all the times. The market is not designed in such way. You have to prepare yourself to embrace the losing trades since it is one of the easiest ways to survive the extreme heat of this market. If you are completely new to this market, embracing the losing trades will be a little bit difficult for you.

Trading is extremely easy for the disciplined person. If you can follow these simple tips, you are going to see yourself in the line of successful traders. Always remember to keep yourself updated with the latest market news since it is one of the easiest ways to avoid false spikes.