Before going into loss make sure you have used appropriate margin, if so’ you can’t follow the steps to overcome your trading loss.
Investment: $10,000 Margin Used: 2% that is: $200 with the help of leverage 1:50
Open Floating Loss:-$400
Above example given in an assumption of your trading loss hit 4% of you investment of $10,000. We can’t win all the trades when it goes loss you can overcome the loss by using this method.
- Second Call: Weather you Bought or Sold , if you believe the market will come back and recover your loss go for second call (repeat again) For Example you have bought the position around USD/JPY 110.50, now the market plays around 109.50, 100 points down or opposite direction if you believe the market would come back go for second buy at 109.50 (When you go for Second call make sure you have applied your technical skills)
- Break Even Point: Let’s say you gone through second call when it comes to 110.00 (No Loss and No Profit) come out of it, whether you opted for second call or not if the market recovers from 3 to 4% loss from your existing trade come out with No Loss No Profit that is called Break Even Point and opt for fresh ideas with new trades
- Bear the Risk: If your second call been into loss again then calculate how much loss you can afford to loss. Let’s say for example you are planning to lose 10% of you investment then when it comes $1000 overall($10,000 your initial investment) loss come out of it and take time for new trades and explore the market.
If you repeat above method can’t be sure that you will make profit but you will recover your loss or don’t lose much more. All comes with utilizing less margin from your capital gives this opportunity for trading.