Know When to Quit

[dekac]

Hi Traders

Hope you're fine and ready to become successful on forex market...
Important rule for trading in the Forex market is to know when to quit. In turn, this can also mean knowing when to let things stay as they are. There are no way around having occasional trades that have a negative impact on your finances. Not every trade you make will be a hugely successful one. If life were fair, this may not be true, but in the foreign exchange market, where things change by the minute, there is no way to guarantee every trade will reap rewards. Keep in mind that even the most seasoned foreign exchange market traders have bad trades. Your ultimate goal in trading in the Forex should be to try to come out with more wins than losses.

To make it easier to come out ahead at the end of the day, you should always know when to fold on a deal. Never let deals that you know are losing simply happen because you are praying something will change or to save your pride. Be sure to get out losing the least amount of money as possible. This is a strategy every great trader uses. Watch your trades closely so you can get out when you should. If you have researched the trade before, you will know what the breaking points likely are and be able to make this decision easily. Knowing when to leave well enough alone, alone, is another thing you must learn. Learn to be patient with your trades, especially if they are not in a negative position. ..

Regards
dekac

[ExecutiveIncome2You]

Knowing when to exit a trade is very important, it takes experience and skill to learn when the best time to close a trade is.

[whitepanther]

I agree with you guys, knowing when you have to exit the trade is critical in becoming an experienced trader. Of course, if you have a strategy in which you have foretold that losing is affordable then go ahead and stick to your strategy, any way that’s the discipline you must have as a trader, and the trader’s wisdom is knowing when to quit.
Good day to everyone

[Tropical]

Good points guys.

Here's a couple of rules I have.

I only risk 1% of my account per trade most of the time, occasionally I will risk 2%, never 3 or higher.

I quit the day if I lose 6% I quit the week if I lose 15%

Each position I open that isn't a scalp I will exit half at my risk and then set the second half to break even. Example: 40 pip risk, exit 1/2 at 40 pips profit and move my stop to BE (break even), then let the second half go to my target or use 2 bar trailing technique, moving average break, or gut feeling.

Here's something really important to understand. Say you start with 1000 and you lose 50% and then you gain 50%:

1000 - 50% = 500$
500$ + 50% = 750$

In my opinion risk management is the reason why 90% of traders lose. If you are smart and treat this like a business that is half the battle.

cheers,
T

[ExecutiveIncome2You]

Those are some really good guidelines actually, way to guard against large losses