Loss is part of trading. Nothing is bad by having loss trades. What trader needs to do is how to manage trades so win ratio higher then loss by building a ‘good’ system that can provide consistent profit. There are couple things need to be considered to make consistent profit.

First, finding a good trading system. There are lots of trading strategy out there. It is traders’ main job to find one or more strategy(ies) that suits trader’s psychology and life style. Then, learn the upside and downside of the chosen system, technical analysis, market behavior etc, until traders can implement all knowledge related to the system to form and sharpen their own trading style. Keep practicing on the system. Practice makes perfect.

Next, trader needs to set trading rules. Then, they have to understand and follow the rules that they have set. It is important as if an unexpected event occurs, trader can execute the trade without the influence of emotion and avoid mistake. Most of the time, loss is the result of poor market conditions or a wrong decision because of fear or greed. A good trader has to follow trading plan, so the market can not dictate the trader’s decision during trade.

Then, money management. Trader needs to find their own comfortable percent risk, a percent level where trader feels okay either they loss or profit. It should be balance with the hours they spend on trading.

To find one good trading system that brings cash flow takes lots of time and huge effort. It is important to really understand that this is a learning process that needs time, not an instant way of making money. If one system fails, then do research and find another system, so on and so forth.

About Vilas Kusumahardja

Originally from Indonesia, Vilas began trading ten years ago to support his love of travel. He figured that, as long as he could find an internet connection, he would be able to support himself. In 2008, he came to the United States and a year later, re-learned everything he thought he knew about forex. Now, he places trades using support and resistance, utilizing signals from EA's. Vilas helps at the Apiary Fund as a trader support representative managing the Apiary Fund blog and answering questions in the forum.

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