Manage Loss - First Step Is Learn To Accept Loss

Main Plan: Always accept the loss at your emotional tolerance level.

Strategy: Always adjust and reduce dollar per pips to a level that you feel comfortable with, when you lose.

Standard Risk Management:

1. Identify the Risk (Losing) of level.
2. Learn to forget about how much you will win.
3. Instead, we only focus on the level we willing to accept the lose

Classical Scenario.

You see and recognize the potential trade on GJ Pair, so you want to make a trade, but before we open the trade,

Step 1 - Identify the risk

1. Where does my stop loss go?
2. How much i will lose?
3. If the trade goes against me? Do i ACCEPT the Risk of Losing?

If YES, proceed to next step.
If NO - Adjust the dollar per pips until you ACCEPT the RISK or DO NOT TAKE THE TRADE.

This is critical and very important, you have very honest with yourself here. You must be able to say to yourself, THIS IS THE RISK I AM PREPARED TO TAKE ON THIS TRADE AND I WILL UNCONDITIONALLY ACCEPT THAT IT MAY BE A 100% LOSS.

If you cannot do this then YOU DO NOT TRADE.

Step 2 - After we ACCEPT THE STEP ONE

Where do i take profits? For example, we may put on 2 contract and take profits on first contract at in increments of 100 pips. We may trail the second contract until wee see significant GJ reversal bar.

THIS IS OUR PLAN... Now, we want to focus on TRADE UR PLAN.

Step 3

1. Do i believe in my plan?
2. Do i have 100% absolute faith in my plan?

If the answer to this is NO - Make a NEW PLAN.
Do not TRADE until you UNCONDITIONALLY ACCEPT YOUR PLAN.

Step 4

Trade Management - If you are trading the DAILY TF, so no need to check your charts UNTIL AT THE START OF NEW CANDLE. It is mean you only check on Next Day... If your trading TF H4, its mean you only check @ completed of H4 (2,6,10..)

If you have been HONEST with yourself and ACCEPTED YOUR PLAN then there is NOTHING TO DO until

1. You will either be stopped out FOR LOSS which you have already ACCEPTED and are no longer concern for you, or
2. You get PROFITS

There are NOTHING ELSE FOR YOU TO DO

You must learn to BELIEVE I YOUR PLAN, so always PLAN THE TRADE & TRADE THE PLAN.