How to trade Forex without serious losses [Beginner’s Guide]

How to trade Forex without nervous breakdowns and large losses
[save your health-money-time]

All beginners, even those who had theoretical training and already have the minimum experience, suffer a «Woe from Wit» syndrome after the first losses, and the more active their subsequent actions, the worse it affects their deposit.

As a result, there is one step before a nervous breakdown and only several steps before the total loss of the trading account.

For whom this article is?

… for those who already have received not only financial, but also a psychological blow from the market and have no methods of the fight against the consequences yet.

Trading is an eternal search of the balance between emotional poles: fear of losses and the euphoria for profit. The problem of the beginners is a misunderstanding of themselves and their purposes at the market.

Result? Incorrect goals and the irrational way of trading.

We offer several thoughts (from the personal trading experience) regarding a “nervous” topic “How to trade Forex” which have been written down in the form of the small notes on the fields.

Let’s get to the point.

Follow the rules of the game

The difference between a victory and defeat as a rule, hangs on a thin thread of several points.
Victor Niederhoffer

Never risk the full amount of money, whether it is a commercial transaction or an accumulation at the market that cat won’t jump.

Do you want to open a deposit (and to trade) or to invest (and someone else will trade)? Then divide the available sum into two parts: put one to the trading Forex deposit, and the second secure in a bank deposit (if you don't trust banks – just put it to the safe).

The next question − how to trade Forex particularly? If the sum allows, them open several deposits for the different trade assets (or trading strategies), or if you are an investor, share your capital between the several traders or the PAMM-accounts.

Know your enemy

Your main enemy at the market is not the monster-market maker or other traders, but your personal laziness, a lack of knowledge, unreasonable ambitions, and only sometimes it is the unfair broker or the technical problems.

In order not to lose you should carefully study financial assets, their technical and fundamental features, the activity modes, the arrangement of players, and correlation with other tools.

Try to respect the market
and make friends with it

Be ready to adapt to the current market even if you have to reduce the expectations for the sake of stability. You should choose reliable partners and have the latest technologies.

Systematic trading always removes the main emotional pressure away from the trader, and the trading system has to consider your personal psychology, therefore, don't allow your personal behavior to cause the conflict with the psychology.

Control a risk level

The beginner is always subject to two extremes: “unfinished” trading and overstay of the losses. For example, you are so self-confident, but the profitable turn was “late” – don't wait, otherwise, margin-call will appear on the horizon.

Even if you have enough money, getting out of the deep sag can be difficult, and the additional transactions will be needed, but this will increase pressure on already weakened deposit.

Trade the way so there will be always money for the following transaction

Risk no more, than you can lose, but risk enough to earn.
Edward Seykota

The number of the transactions has to be adequate to the quality ratio (profit). The standard fear of losses and protective reflexes cause the desire to close the order quickly.


It all comes down to this:

A few positions = a few profit = disappointment and fear of the new transaction.

What can you do?

You should reduce your ambitions (put TakeProfit closer) and reduce risks (put StopLoss obligatory, instead of the manual exit). In this case you may open the order and forget about it until you get a result.


Don't waste the market time

Unproductive contemplation is the way to the physical fatigue and loss of the trade opportunities. If you don't trade then spend your time studying, backtest the strategies, and analyze the results. If you feel that you have lost your interest in a situation, then make a break or stay disconnected from the market for some time (for example, read the classics of the market).

The business hours have to be optimum both for the trader, and for a trading asset. For example, trade at night strengthens a stress pressure on an organism (even if you – a “night owl”). Coordinate a rhythm of your usual life with the trading mode, so the casual life things do not mess with your trading.

Disconnect the external factors

Нow to trade Forex calmly? Don't give to the market a reason to use against you any of your problems. If there are factors which disturb, irritate, distract, then as much as possible exclude their influence on the trading process. And it does not matter, we talk about people or circumstances, temporary factors or constants.

The analysis of the market demands to process the tones of information: ensure you have the modern equipment, the high-speed Internet and also reserved equipment and communication channels. It will keep your nerves and money safe.

We accept inevitable losses

Trading can be a fight for the better life (quiet, stable, financially safe), for professional success (personal ambitions, development and self-realization), but it shouldn't become a fight for physical survival.

Most of the beginners don't react to the threat of the trade on the last, borrowed, credit money, until they lose them totally (check here Nassim Nicholas Taleb - Black Swan ).

Don't allow not only catastrophic losses, but also the small losses to be the cause of a nervous breakdown. Consider the current losses as your investment into organization of the profitable business, draw the conclusions and work harder further.

We trade independently

If you are told: "Sell, because everyone sells!", always ask: "And who buys from them?"
James Dean

Studying of the trading techniques using the Forex history (check here Historical data) don't cause such stress as the live trading with real transactions.

It is hard to make decisions, it is much easier to criticize and advise. On the way to profit you will constantly meet “well-wishers” with useful (and not really) advice. Don't let them to make you losing focus on the trading: save your nerves and time.

The thought is material: what is in your head that is in your purse

Analyze your reactions and correct them in 3 possible ways:

  • … Change the object of the emotions’ concentration − we change the direction of the thoughts and attention: for instance, instead of fear of loss we think of the profit probability.
  • … Change your habitual beliefs − we change our estimation of the events and acts: we consider a loss as not an accident, but a temporary miscalculation, the transaction unopened in time as a chance for more favorable entrance;
  • … Change your physiological reactions − control your movements, mimicry, breath, sound reactions and personal fitness.

Improve yourself constantly

Everyone defines for himself the scheme and technique how to trade Forex, so he will not to remain poor and disappointed.


The hard work is, of course, a way to success, but not a key to a sacred door.

The key is in effective work. The efforts, time and money spent for preparation have to make each your movement at the market optimum, so it will allow, at least, not losing money in the future.


Enjoy both results and process

Successful trading has to be not only business, but also a favorite hobby. Learn not to be tired of the continuous chart studying, positions monitoring and processing tones of the information.

And what is the result?

So you follow all the tips on how to trade Forex, but the results still do not please you?

Remember: the first positive results of the real trading should be obtained usually no less than 1 year after the beginning of the trading. If there is no result for a longer time – it`s better to change a field of your activity and consider such step not as a defeat, but as a just reasonable approach which will cost you much cheaper.

Before opening any trading transactions, you can always check your strategy with the help of the ForexTester software − on real quotations of any asset and in various trading conditions.

Share your personal opinion on how do you manage the stress while trading Forex. Was this article useful for you? It is important for us to know your opinion!