Money management tips for managing losses in Forex

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The lost our bad friends who will always be with us to remind us that monetary management should be our best friend. When the losses arrive, they arrive … either by a mismanagement or projection or by indiscipline by not respecting the working hours or the rules.

Our psychology is irremediably affected by how much yoga we do. Is affected and much, depending on our character and the level of maturity, we block or decide to risk more to take revenge or decide to operate with even smaller lots, or open a counter operation or change indicator or expand SL or simply do not apply, The SL. These and many more cases have happened to me and many traders I have met along the way. Those who continued to do so are no longer with us, the important thing is not to follow the masses.

I am going to tell you what I did and I continue to apply, maybe it will serve you. When I have a loss is because the SL was not in an extreme area or because the market suffered a leak (I will explain later), what I mean is that there are two ways: why you did not respect the rules and why Market is capricious and has schedules and areas where we should not operate. It is frustrating when having the right direction of the market decides to go and look for our SL, apparently we have a spy, but it is not, it is only the psychology of the masses.

FIRST: What I do when I have a loss is to stop and self-evaluate, to see the loss as a percentage, even I never know how much I am gaining or losing money I see everything in percentage, that decreases anxiety. Only at the end of the day do I see how the hunt was.

SECOND: is to review again from the previous day or major periods where I made the mistake. If we are with a lot of volume and we think it could be a good move that we should not lose, it is better to take a break, get up and go to the kitchen to eat something, take a short walk, talk to a person of something other than trading etc. The important thing is to leave the place where we are operating .. One of the best indicators of SELF-SABOTAGE is the excitement, that is when you can not even take your eyes off the screen, almost without blinking, you feel the beat of your Heart and you feel an almost miraculous security that your operation is correct.

THIRD: if you have more than 3 operations in lost it is best to close the computer and rest, one of the most frequent causes of loss in trading is the lack of concentration given by not resting enough.
There are tools that significantly reduce the percentage of losses in the market. Are the maximum and minimum levels of the previous sessions the supports and resistances, the emas, the zones of transit and a good reading of the price.

Fact: Each loss that we have to recover it with the same monetary management standards will take us at least between 2 and 3 operations, if the risk percentage of 3% is observed.
Have a happy day classmates