Losing trades are part of our job, but…

mario urlic forex education

How much we lose when we are wrong, that is the most important thing in our decisions. I usualy said, cut you’re losses quickly and let you’re profit runing, but it’s not so easy to admit you’re self that you’re wrong, right!? Well, you must do that and with no delays. For so many times in my forex career I’ve made mistake by losing to much, after wich there was so hard to recover, most of the time even impossible. That’s why you must have you’re risk management at the highest level, almost at 100% all the time. Not only that you have to be disciplined and stick to your low risk plan, but you must be quick in you’re decisions when you realize that you’re wrong. It’s better to cut you’re loss at 0,50% then lose 3,0% or even more. I don’t need to tell you why, right!?

I am more then surprise when I see that traders are having risk/reward ratio of 1:1 or 1:2 in their strategies. To me, it’s similar to gambling. Because, you can make a few mistakes in a row with no problem and how much profitable trades you must have to return at the beggining after that? To many! You’re RR ratio must be at least at 1:3 and that’s also to small ratio based on my experience. I am using mostly 1:5 or bigger. It’s not that you have to wait you’re target at all cost. Sure that you will close you’re good positions if you’re target is unreachable and it can be for various reasons. But, when you make money, try to make it big. Because, when you make a good trade with let’s say 1:6 RR, you will have a reserve for the next 6 entries in to position. And that’s is what matters here. In each trade we must take a risk and for taking the same we must have a capital. Make it with you’re winning trades! Move you’re stops always above the entry when you can, because you’re SL in the positive teritory is winning trade as well.

Collect you’re positive trades and make them big, cut you’re losses and make them small!

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4 comments

  • Odlicno napisano, sa tim sto mislim da je 3% ogroman rizik. Uvek bi pre preporucio trgovcima da smanje rizik max. na 1,5%. Ja recimo uvek gledam da smestim svoj sl. u 30 pipsa ,a ako se lomim dali mi treba veci sl. ja podignem ili spustim cenu ulaza za toliko koliko sam zeleo da prosirim sl. bas iz razloga da ne bih povecavao % udela racuna u sl-u ili da ne bih izgubio rr odnos (za koji isto smatram da ne treba da bude manji od 1:5 mada za to treba da bude covek psiholoska gromada i to deli po meni uspesne od onih drugih) Uvek jos u fazi planiranja trgovine treba i covek da odredi na kom ce nivou svoj sl. spustit na cenu ulaza (bi) nikada ne treba zaliti ako se cena vrati i zatvori trgovinu na nuli. Jednostavno treba biti disciplinovan i drzati se plana jel trgovanja ima svaki dan ,a nula je u ovom poslu uvek pozitivna 🙂 Sve u svemu strpljenje i disciplina su majka forexa

    Pozdav

    Liked by 1 person

    • Moj RR se kreće od 1:5 do čak 1:10. Često sam znao pokazivati te trejdove, međutim preko 1:6 je kod vrlo jakih tehničkih levela gdje se može štititi na nekih 25>30 pipsova. No, sve to ovisi o trenutku jer nema pravila koja se mogu primjeniti generalno. Naime, svaki trejd na forexu je poseban. Što se tiče rizika, trenutno radim sa jednim malo većim računom gdje mi se rizik po trejdu kreće od 0,25>0,50% max. na sve otvorene pozicije. No, smatram da se može ići do 1,5>3% ako si discipliniran trejder. No, tu max. DD mora biti 30% čak i veći, što nije malo. Ako nisi discipliniran, lako se upadne u probleme.
      Trejderi obično ulaze u veliki rizik jer trejdaju sa malim računima, a žele puno zaraditi. To je nemoguće sa malim rizikom naravno i onda se upadne u probleme iz kojih se teško izvući. Dakle, ako želiš zaraditi x3 ili x5, može se, ali se moraš priremiti na veliki rizik i biti svjestan istoga, na osnovi njega pripremiti strategiju i trejdati po njoj. Sve je to ostvarivo, ali treba imati veliko znanje i isustvo.

      Like

  • Nice one Mario.

    Liked by 1 person

  • on point my leader

    Liked by 1 person

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