Losing trades is very common in the Forex market. You might be the most skilled trader in the world, but you still can’t avoid losing trades. All the successful traders in Singapore are making millions of dollars profit whilst losing money on a regular basis. They never expect to win all the trades. On the other hand, the inexperienced traders are always trading the market with high risk and trying to earn more money. After dealing with some losing orders, they start blaming the market.
Trading is a very delicate job that requires pin perfect executions of the plan. Even after all the hard work, you might think you are not making any progress since you don’t know how to recover the losses. Recovering the losing trades requires art and precise steps. Let’s find some of the amazing ways by which you can recover the loss in your trading business.
Look for the best signals
After losing a certain portion of the capital, you need to take a small break. The small break will help you to refresh your mind. Once you have a stable mindset, look for the best possible trade signals in the higher period. Forget the fact, trading can be done in an aggressive way to recover the loss. Instead of following the path of the naïve traders, look for the high-quality trade signals in the Saxo platform. Once you find a perfect signal, take a 2-3% risk depending on your risk tolerance level and execute the trade. If the trade goes well, you will be one step close to recover the loss.
Focus on high risk to reward ratio
Trading the CFD market with a high risk to reward ratio is one of the most effective ways to recover the loss. Let’s say, you have lost 6 trades in a row. It’s very obvious you will become emotionally unstable and this will push you to take a high risk at trading. Instead of increasing the lot size, you should look for a 1:6 risk to reward ratio in the next trade setup. If the trade goes in favor, you can easily recover six losing trades with one winner. Finding such high-quality trade is a very difficult task but once you learn to trade this market with a position trading method, you can expect to make a big profit without any trouble.
Try to trade the volatile pairs
To recover the losses you need to trade the volatile pairs. Trading the volatile pairs might be a little bit risky but if you manage to find the key trading zone, you can expect to make a decent profit within a short period of time. Think about your long term goals and try to improve your trading skills by following all the basic rules of investment business. Look for the potential price action signals at the critical price level so that you can execute the trades without having any issues. Trading should be done in an organized way. When it comes to volatile pair trading strategy, you must be extremely careful since it can magnify the losses.
Trade the major news
The news trading strategy is one of the most difficult tasks for retail traders. In fact, many people have blown their accounts by trying to trade the major news. Being a new trader in the Forex market, you should learn to trade the major news in the demo account. Once you have extensive skill in trading the economic events, you can consider the news trading strategy as your recovery plan. If you lose a big sum of money, try to take advantage of the major news. But make sure you are not taking too much risk since it can result in catastrophic disasters. Unless you know how the news trading method works, never include such steps in your recovery policy.