How to deal with loss in Forex?( The most important rule in the area of currency trading is to try to reduce your losses as much as possible. When your losses are small, you can stay in the market for as long as you can, even when you are moving against you, so that you can benefit from market conditions when you start moving in the direction you want. One of the best ways to keep your losses at a minimum is to determine the maximum loss you can afford even before you open the trading center. The maximum loss or loss is the maximum amount of capital you can remain comfortable even if you lose it during trading. Keeping your maximum losses at a certain percentage of your account balance will not stop you from trading at any time. Unlike 95% of forex traders who lose their money just because they have not followed prudent rules to manage their capital within their trading system, you will remain in good shape using this golden rule of capital management. Let’s use an example. If you have a $ 1000 trading account and start trading at $ 100, you may be losing three consecutive times. This will reduce your trading capital to $ 400. Then you may decide to trade at $ 200 in the next trading center because you think there is a greater chance of making profit after losing three consecutive times. If the trader decides to trade at $ 100 in the next trading center because he thinks he is able to make a profit, his capital will decrease in case of loss to $ 250. In that case, the chances of making money are almost non-existent because he will have to win about 150% of his capital until he reaches the point of parity. If the maximum loss has been determined and committed, the trader may not find himself in this position. And other way to use your trading strategy, and to accurately transmit the results of your trades to the profit and loss rates and the expectations of the strategy. For example, if your strategy shows a profit rate of 75%, you should expect 25 losing trades after you have 100 trades in the Forex markets. However, if your strategy is performing as it was during the experiment, you still have to record profits if the forecast value of the trading strategy obscures its effectiveness. Therefore, you must deal with the losses as a normal part of the trading sequence in the Forex markets, which produces profit-loss ratios for your trading strategy. However, if you trade in the Forex markets in an illogical way, you will not be able to put your losses in a very clear frame, and you may be scared as a result. Trying to force operations to succeed when all the market conditions are not in your favor is not wise, and will only result in substantial financial losses. Instead, you have to develop a psychological state that enables you to deal with losses as they are by analyzing them mechanically and with cool nerves. You have to study it systematically, and then move on to the next process
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