How to Recover from a series of Forex Losses

You are probably aware that one of the most important concepts that you have to understand in order to achieve Forex success is that you must maximize your profits on your winning trades whilst minimizing your losses on your losers. If you are a novice or have been trading for a short time, then you may have already experienced a run of poor performances.

You must always remember that even successful forex traders suffer more losing trades than winning ones over any given time-frame. However, they always ensure that the win:loss and risk:reward ratios of their trading strategies guarantee that they will achieve profits over the long haul.

So, what can you do if your wins have become fewer and further between whilst your losses are stacking up? Here are a few ideas that you might try.

You must never overtrade your account by risking more than your budget can comfortably sustain. In addition, if you are trying to trade more than one currency pair, then you should cut back. You can always trade more once you are proficient at trading one currency pair.

You should consider maintaining a trading diary. You can then research at a later date into its contents to identify any common threads to your trading. You may be able to increase your number of wins whilst reducing your losses by performing this action.

Perhaps you have become jaded by trading forex for too long. If so, then take a break and gather your thoughts and allow your sub-conscious to process all your trading experiences to date. You might get a flash of inspiration or important insights by doing so.

You should also consider reverting back to demo-testing and thoroughly retesting your trading strategies. You need to carefully calculate their win:loss ratios and expectancy values in order to detect any deterioration in their performances.

Whatever you do, do not try and regain all your losses by undertaking a solve-it-once-and-for-all type of trade. This is trading suicide and you will only endure further larger financial losses by adopting this approach. If you feel that you have a need compelling you to trade, then you should do so by risking only small amounts of your budget.

You can achieve this objective by opening a micro Forex account which will permit you to risk only 10 cents a pip. Always keep in mind that successful traders are first great survivors and then great earners.

You must always exhibit good levels of discipline and patience. You will find that this is best done by trading a well-developed and thoroughly tested trading plan. You need to follow a set of instructions that clearly identify good entry and exit points for all your new trading opportunities. In addition, you must gain a good understanding of money management concepts so that you can provide the optimum protection for your account balance.

You should also consider seeking new sources of education that can enhance your Forex knowledge. You must develop faith and trust in your trading strategies in order to achieve Forex success.