How to Avoid Forex Losses

Worrying about the losses in Forex Trade? – Be assured. To a great extent it is avoidable

avoid forex losses

Not like in many other businesses where buying, selling, stocking, meeting the overheads etc are taking place, in Forex Trading money alone is involved. So, the losses incurred here and there are felt in absolute money value and is looming large on the face. Though loses in the course of the trade is unavoidable, the real problem lies in the situation where the trader had to lose the capital itself.
Many things are fixed in other trades and the profit doesn’t depend on any trends. Some factors affect the margin but the investment is mostly risk free. No assurances could be expected in Forex trade where the trend always changes and the prediction to sell or buy is elusive. By following certain tips and by avoiding a few things, losses in Forex trade could be certainly reduced to a great extent.


Initializing a lot of trade at a time, in the hope of booking a profit even with the slightest increase in prices is known as Scalping. Though it is widely believed as a safe way of trading, huge risk is involved because of leverage.
Disaster is awaiting to happen with any step in the wrong direction and profits earned in many trades is bound to lose in few trades. Scalping is not so professional way of trading and keeping it away is always good.

Expecting loss

Incurring loss is part and parcel of Forex Trade and the attitude to accept it differentiates the expert from the amateur. The right time of entry and exit, making profits by following the tips makes you an expert with time. If anybody promises you heaven by getting profit in every trade, Beware! and don’t fall in line.


Trading is not a high way and you couldn’t afford a fully accelerated driving. You need brakes and controls for a smooth ride and for the safe arrival of your destination. A good trade starts with proper stop loss and limit order. Predefined check points are compulsory which keep you on track.

Proper Indicator

Most of the indicators in the market are unreliable and most of them don’t have even a proper entry point. Such indicators will only add to the chaos in the market and your capital itself is not secured. But it is a necessity that you have to trust an indicator and stick on to it for a long time. Because a proper indicator, like The Pipbreaker in our case, requires time to start giving profits. There is no such indicator, which predicts the market completely and starts giving profits from day one.

Money management

Even if you have an impeccable indicator and follow all the trading rules to perfection, without proper money management you would reach nowhere. Predetermine the money you are ready to risk for every trade so that any failure won’t affect you by losing the entire capital
“Go with the trend” is the usual advice received by every trader, but you will never know what the trend unless it is over and the direction changes. So take a deep breath, plunge in, but before you do that, check your oxygen supply.