Foreign Currency Exchange Trading Tips: 5 Easy methods to Make the Most Out of Trading Losses

Quite a few books have been written on how to make money in the market. Many of these books can be very useful when you are trying to learn new techniques to profit from the Forex. However, what you don’t see often are books or articles that educate you on how to react and take losses.

Foreign currency exchange trading can lead to become a very thriving trader as long as you educate yourself and reinforce your trading skills. Learning how to take a loss is one of the most significant lessons you will learn as a trader. In this trading article I would like to share with you 5 ways to make the most out of your trading losses.

Accept the truth that every trader has losses: This is something that many newbie traders have trouble understanding. The Forex industry is so filled with gimmicks that a lot of novice traders believe false claims such as “Win 100 % of the time” or “This trading system has no trading losses”. The truth of the matter is that every trader has trading losses, even the professional traders. What makes the difference is the way how successful Currency exchange traders handle their risk and take care of their trading accounts.

Review your losses and learn from them: Trading losses are simply part of the Currency trading game. I have always said to my traders that you learn more from your losses than from your winning trades. The only way to improve your trading skills and take your career to the next level is by learning from your trading mistakes. Success is made out of small mistakes which allow you to make changes in your trading along the way.

Keep a trading log to record all your trades: A trading journal is a record of all your trading positions. A well written trading journal will keep track of at least: all your trading positions, the profit and loss percentage, the pips loss or profit, the time and date of the trade, the entry, exit, stop loss, and take profit guidelines.

A trading journal will allow you to go back and analyze the trading strategies that are producing the best results and the ones that are doing poorly. I always record my trades so that I can examine them by the end of the week and find ways to improve my trading strategies and systems.

 In conclusion, having a trading journal will help you to identify your weaknesses as a trader and find the best ways to improve them. A successful trader never stops to learn, and never stops to enhance his/her trading abilities.

Trading losses don’t create losers (it’s actually the opposite): It is a false belief that only unprofitable traders have losing trades. The best traders are those who learn from their mistakes and don’t let their emotions control their trading. The simplest way to never lose your shit is to use strict money and risk management and always plan your trades.

Foreign currency exchange trading can become quite simple after you have learned how to manage your risk and have developed a great understanding of the markets.

I look ahead to writing more useful articles to help you to be a better Forex trader.

Regards,

Jay Molina

Pro Trader & Educator