So in the emini s&p 500, apart from good money management, risk tolerance and not being greedy what other ways can you reduce your losses on trades. I looked into hedging but that seems like not something just anyone can do. Is there anything else, like some kind of strategy that can reduce some losses?
thanks for the reply, are there any other things I can do as well.
I hope some people can list lot's of different ways you can reduce losses. I think this thread could also help out other new traders.
shadowninja
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Know when to get out, which could translate as "work out the best size stoploss to ensure you're typically in on the right trades and out on the bad trades". This comes from refining your entry. For instance, if you've been shorting EURUSD randomly for the last two weeks with a 200 pip stop, you'll make money but eventually you may take a number of 200 pip hits. If you randomly entered with a 50 pip stop, you'll probably take more hits more regularly. So, your task would be to work out how small the stop could be (100? 150?) to enable you to take the moves or get out if your'e wrong. OR refine the entry so that you only needed a 1 pip stop (assumption: you're some kind of trading genius) or something smaller than 200.
Currently, I'm swing trading with just a 20 pip stop. Occasionally, the market proves I needed a bit more, but usually if it hits my stop, it keeps going so I'm glad to have been taken out.
Currently, I'm swing trading with just a 20 pip stop. Occasionally, the market proves I needed a bit more, but usually if it hits my stop, it keeps going so I'm glad to have been taken out.
Poor planning is the key to failure.Poor money management follows.Taking high leverage could be a course too since it posses higher risks.Never enter a trade because the price is suddenly rising or falling. Always plan your trades in advance. Know your desired entry point, Take Profit and Stop Loss rates before you trade and wait for the right opportunity to arise.
Enzzo
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I also second the "trade less and better" theory...
apart from that, try to have your SL well placed far away from the action, but get out immediately when market gives you advice enough that you were wrong or it invalidates the motives for entering the trade.... this will save you a lot of pips in the long haul....
The SL is there to save you in case a catastrophe, out of your control, happens, but not to let it being hit every losing trade to proof you were wrong in your assumptions...
Cutting the losers soon, but at the same time, giving your trades some room to do their thing is one of the most difficult things to master imho.
apart from that, try to have your SL well placed far away from the action, but get out immediately when market gives you advice enough that you were wrong or it invalidates the motives for entering the trade.... this will save you a lot of pips in the long haul....
The SL is there to save you in case a catastrophe, out of your control, happens, but not to let it being hit every losing trade to proof you were wrong in your assumptions...
Cutting the losers soon, but at the same time, giving your trades some room to do their thing is one of the most difficult things to master imho.
NVP
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NVP
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apologies for previous post ............but as a fellow trader that always seeks to minimise my losing trades and in that process delivers a profitable P/L I support a lot of the other advice here being given :-
1) Only take the best quality trades ......ONLY .....sometimes this is difficult but that ususally means you do not understand your system enough....so learn it more ..........all this means is stay out of flat markets with no volatility .........and if you dont know what a flat market is etc etc then go find out ...
2) Expect to lose every trade and have the exit strategies ready to role immediately trade is on
3) dont just sit there in trade hoping it will be ok ....have set rules that can take you out of the trade if things are not happening as you want them...time spent in a trade initially with no positive expected movement or momentum is a bad sign and conditionsa re therefore changing from your entry point
4) In my opinion a Stop Loss is just the backup/parachute if the market spikes....My systems have me out of a trade WAY before my S/L point (See 3)
If you focus on not losing trades the P/L will look after itself
http://www.trade2win.com/boards/for...-basic-ideas-strategies-1101.html#post1863618
N
1) Only take the best quality trades ......ONLY .....sometimes this is difficult but that ususally means you do not understand your system enough....so learn it more ..........all this means is stay out of flat markets with no volatility .........and if you dont know what a flat market is etc etc then go find out ...
2) Expect to lose every trade and have the exit strategies ready to role immediately trade is on
3) dont just sit there in trade hoping it will be ok ....have set rules that can take you out of the trade if things are not happening as you want them...time spent in a trade initially with no positive expected movement or momentum is a bad sign and conditionsa re therefore changing from your entry point
4) In my opinion a Stop Loss is just the backup/parachute if the market spikes....My systems have me out of a trade WAY before my S/L point (See 3)
If you focus on not losing trades the P/L will look after itself
http://www.trade2win.com/boards/for...-basic-ideas-strategies-1101.html#post1863618
N
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