Things You Should Be Careful With When Trading Forex
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Hitting a slump isn't uncommon in the trading world and losing streaks are no reason to go packing ever so easily. Every Forex trader gets into a slump at one point or another in his career. In fact, even the most profitable and successful pros have had their own time in the rut at least once in their trading journey. If you are experiencing a series of small trade losses or have had one huge loss that wiped all your profits out, leaving your account in the red, it is easy to give in to pride and go on a streak of revenge trading. Insisting that you are correct and the market is wrong and going for "betting the farm" (go-for-broke) trades, or trying to hit a homerun is no way to recoup your losses. If anything, this will lead you to even more devastating and disastrous results leaving you with a triple zero mark.

Here are some things you should be careful with so as not to repeat a losing streak and avoid big losses altogether:

• Trade breakdown – Look into all the trades that you have taken with the intention of seeing your winning setups while also recognizing those that don't quite work. This will require a review of all your trades and while this may take long, it is a far better approach than blindly betting on pairs that only throw your investment away. A few hours of sifting through your trading journal is a small price to pay if you are serious about getting your trading mojo back. Break your trading data down into bite size trade sessions, long or short positions, currency pairs, trade strategies, and other categories you think will help you better analyse your winning patterns.

• Stops and targets – By reviewing lost trades, you also get to recognize losing streaks because of setting stops too tight or setting profit targets too far. This will help you make the necessary adjustments to your trade rules and strategies, keeping in mind the high volatility of the Forex market.

• Trade size – When you are suffering a losing streak, it may also help to reduce your trade size as well as risking less, at least until you can get back in the groove. This will help you get a better feel of the market and at the same time regain your trading consistency. Once you are in the groove, it will be easy to increase or return to your original trade size again.


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