Wed. Jun 7th, 2023

Fxtriangle | Market analysis | Managed trading

Fxtriangle will make Fx trading look easy.

Study Your Losses to Realize Gains

2 min read

Traders skills to show losses into gains. Rather than reflect past defeats, or trading losses, they use the setback as a motivator, a chance to hone their skills, grow, and improve. They examine what they did wrong, learn from their mistakes, and consider the temporary setback as a launchpad from which to realize higher future performance.

As traders, it’s crucial that you simply keep accurate records of all factors which will impact the result of your trades in order that you’ll learn from your losses, improve your performance, and do better next time.

Traders often look to the profit/loss ratio – that is, the proportion of the size of winning trades to losers – as a sign of success and profitability.

A profit/loss ratio in excess of 2:1 is often sought-after, but this simple metric can be a bit misleading since some trades are inherently riskier than others.

A profit/loss ratio refers to the size of the average profit compared to the size of the average loss per trade. The average gain versus the standard loss per trade also tells you ways well you’re managing and shutting out your positions.

Average profitability per trade (APPT) basically refers to the average amount you can expect to win or lose per trade. Most people are so focused on either balancing their profit/loss ratios or on the accuracy of their trading approach that they’re unaware that a much bigger picture exists: Your trading performance depends largely on your APPT.
This is the formula for average profitability per trade:

APPT = (PW×AW) − (PL×AL)

PW = Probability of win
AW = Average win
PL = Probability of loss
AL = Average loss

Expectancy refers to the average dollar amount you expect to realize or lose per trade supported previous performance.
It combines your percentage of profitable trades and average gain per trade together with your percentage of losing trades and average loss per trade:

Expectancy= (% winning trades * Average gain) – (% losing trades * Average loss)

Armed with this data, one can study a series of losing trades and identify the factors that led to the trades going wrong. One can then change these factors in subsequent trades and monitor improvement. The key is to require an upbeat psychological approach. Rather than mulling over one’s failure, it is more useful to look at past failure as a chance to grow and improve. Viewing a loss as a growing experience changes your perspective immediately.


Leave a Reply

Forex trading and any instruments related to Foreign Exchange Market are Speculative and carry substantial risk of loss of either partial equity or the entire deposit amount. Leverage adds up to the risk, before considering to invest in this venture, you should first consider your financial position and may seek the help of an independent financial advisor. FXtriangle dis-recommends the usage of loan instruments to trade in this market as it can hamper financial position. Please do not invest the money that you cannot afford to lose. FXtriangle provides all its services throughout the Globe Excluding (Nigeria, British Virgin Island & the Islamic Republic of Iran) and also provides limited service in some jurisdictions where investment in Overseas markets / Fx Exchanges are prohibited by Law If you are not sure to contact us before using any of our services. FXtriangle acts as an Independent Corporate Financial Advisor and connects you to various overseas exchanges and cannot be held liable for any financial damage occurring through their side. All of our partnered institutions are regulated in various jurisdictions.FXtriangle conducts an independent background check before partnering with any institutions to fulfill your investment objectives smoothly. The usage of our Business name, Logo or any trademark in any financial forum, website, review website, complaint arena, Billboards without our written permission will attract lawsuits.