If your trading experience in Forex resulted in a loss of some good portion of your initial investment, there are two things you have to do.
First - stop trading immediately and let your mind and emotions settle down. The pause after a streak of losing trades in Forex not only heals you state, but also allows to escape market conditions that caused you to lose your capital.
After couple of days or a week look back at your system and evaluate what went wrong.
Redefine your trading parameters. Read more about Forex trading, learn something new.
That's all common sense recovery of your traders personality and fixing your working tools...
Now about actual account recovery. Will it be reasonable to return and trade long term if your Forex account has shrunk substantially? I'd say, no!
You can't afford another streak of losses. You need real profits right away. Most of us can enter a trade and make first 5-10 pips with no efforts. So, let this scalping approach be your helper for the first month. Get in, grab your dear 5 pips and get out. If you don't know the system that will allow you to scalp efficiently, spend some time researching.
You may say, that's a tough routine. Well, yes, but remember, you were the culprit of your large losses, so now it is time for a serious work. Scalping in Forex is a hard work, but it is the most efficient method to recover your thin Forex account to normal weight.
Happy Forex scalping!
Subscribe to:
Post Comments (Atom)
5 comments:
Something tells me that you might be right.
Although scalping requires lots of monitor staring, it may be the way to recover badly damaged account presuming that one has a plan and a scalping system to trade with.
With account being eaten by Forex market you can't actually trade Forex with a regular lots and same stops.
Money management needs to be reviewed and adjusted. This would often mean tighter stops (since not all brokers allow to trade smaller or even optional lots).
Thus, even if you don't want, you must go to smaller time frames to begin your account recovery without risking to much.
I tried scalping Forex once, and wasn't successful. So I returned to my routine on hourly charts.
I would probably still agree that scalping can help, but to those who think that being a scalper is easy, I must disappoint you. It is not.
If you tried a couple of times to scalp and won, it is not necessarily mean you ARE a scalper. Try to be consistent in your wins for at least a week or two, then call yourself a successor.
To those like me, who can't scalp Forex profitably, stick to your original plan and rework it regarding money management to cut risks and win your losses back.
I'm done :)
Lisia
After learning dozens of systems and styles for trading Forex, it has become clear that scalping is the only way to trade. Of course everyone needs to find their own style that suits them, but I think you'll find the reduced market exposure makes it much easier to sleep at night!
Thank you. It is great to hear a feedback fro other traders.
Post a Comment