There are many times when I hear about Forex traders opening or closing a trade using 1-minute or 5 minute Forex chart when the Forex market moves against them. This is not my style of Forex trading as the timeframe is too short to prove anything.
When the market moves against them, they will switch to 15 minutes chart to justify staying in the market for a little longer. After a while if the Forex market continues to move against them, they will switch to the hourly chart to find some reasons to stay in the trade. They think that it might be just a small pullback and they have to be patient.
As the market continues to move against them, which may be more than 50 or 100 pips, they will then shift to 4 hourly or daily chart, hoping that they can find some other reasons to stay in the trade. So what happens if the market still move against the trader and is already hundreds of pips away? The next step they will find themselves in is not holding the position anymore, instead they will get a margin call because their Forex trading account have not enough funds left to hold their position.
The main issue here is that they were looking for ways to stay in a losing trade rather than closing and cutting the loss. Even if you are not using my Forex trading system , you should be always using a stop loss and and holding on to a losing position.
Many new traders only think of winning in Forex trading and think that they are losers if they lost a trade. This is because they do not have the right Forex training and therefore do not know the correct way of trading. Professional and institutional Forex traders have losing trades too and they understand that this is just part and parcel of successful trading.
If you ask me what is guaranteed in Forex trading, I will say there is a guarantee of losing and not winning! But it’s the money management and the set of rules that will determine your success. You do not have to like losing, but you have accept the fact that there’s is no holy grail in Forex trading and not all can be winning trades.
I hope the above Forex education will benefit you if you have the habit of switching time frames to stay in a losing trade. This is not a good method to keep losses small. Judge yourself based on monthly basis instead of daily basis. Be consistent in your trading system and stick to one time frame if you are using that timeframe to trade.
To learn how to trade Forex successfully using a simple, time-tested and proven Forex trading system, download my FREE 56-page “Forex Trading To Riches” ebook at http://www.Forextradingpower.com.
The author, Daniel Su, is the founder of http://www.ForexTradingPower.com where you can get free premium Forex trading tips and resources. Daniel Su specializes in teaching real people how to trade the Forex market for long term financial success.
Related posts:
- <a href="http://www.chartportfolio.com/Forex-trading/Forex-training-how-to-stop-your-losing-streaks-in-Forex-trading.htm” rel=”bookmark” title=”Permanent Link: Forex Training – How to Stop Your Losing Streaks in Forex Trading”>Forex Training – How to Stop Your Losing Streaks in Forex Trading I know no one can win in Forex trading for…
- <a href="http://www.chartportfolio.com/Forex-trading/spot-Forex-trading-multiple-timeframe-analysis-for-the-spot-Forex.htm” rel=”bookmark” title=”Permanent Link: Spot Forex Trading – Multiple Timeframe Analysis for the Spot Forex“>Spot Forex Trading – Multiple Timeframe Analysis for the Spot Forex Multiple time frame analysis is the inspection of Forex…
- <a href="http://www.chartportfolio.com/Forex-trading/the-importance-of-a-solid-Forex-trading-system.htm” rel=”bookmark” title=”Permanent Link: The Importance of a Solid Forex Trading System”>The Importance of a Solid Forex Trading System Said to be one of the largest exchange markets,…
Related posts brought to you by Yet Another Related Posts Plugin.
