Cutting Your Losses Short in Forex Trading

[moonchild]

If you want to stay long in the forex industry you have to learn how to take losses like a pro, as Phantom of the Pits stated in his book, Forex is a losing game, whenever you enter a trade assume you're wrong until the market prove you right by making this behavioral shift you'll be able to take losses easily.

The importance of learning to take on losses and cutting them short is that when the wins come, they'll easily override the losses and make you profitable instead of taking big big losses and having to move mountains before you get to breakeven.

What are your thoughts on cutting losses short in the forex market, as I believe is a Maxim that has been around for quiet a long time.

 

[FinTrader]

First of all, you need to trade the lot that corresponds to the size of your deposit. Then the deposit will be able to withstand the drawdown during price correction and wait to earn a profit. It is also important to trade in the direction of the trend, then profits will grow.