How To 🛑 STOP 🛑 Losing Money Trading Forex and Make Big Wins In Two EASY Steps!

Hello traders, how are you? Vladimir here from Home Trader Club. In this video, I want to talk about a very, very common phenomenon, I would say, among traders. And that's from one side they are winning small portions, right? 20 pips, 30 pips, 50 pips, 100 pips. From the other hand, losing and losing big. So I want to talk about that, uh, exactly situation the traders are going through in their trading journey, how a big loss— theoretically big loss, right, with a big stop loss in terms of pips— could affect everything you are doing When you are trading, because if you think about it, you can earn 20 trades in a row, okay, of 20 pips, 30 pips, 50 pips, and then one or two bad trades of 400 pips stop loss would demolish everything you did, would destroy your progress. And besides going backwards in the performance, with that we can all deal, but psychologically this is heavy. Okay, so I want to talk about that. First of all, why does that happen? How can we actually deal with that? And how you can, with very simple techniques, mathematical techniques— that it's, it starts with understanding. The way to solve a problem always starts first of all with acknowledging there is a problem. Define the problem, recognize the problem, acknowledge that. Only then you can come up with a solution. And it all starts with that. First of all, understanding. And then we twist the numbers. The numbers never lie. And if you make them work properly for you, you, your, your trading could twist dramatically as soon as you understand the numbers, okay, the logic behind it, and how you can actually make it work for you. So what is this problem? To present it, I want to go blank screen and explain everything. But before I do that, I would like to take the opportunity and a big Shout out and thank you to Morgan Markets for supporting me, my channel, my community, and our work. Check out Morgan Markets and all the amazing features they have for traders, including what's important for me: great spreads, instant ECN execution, easy deposit and withdrawal, and PAMM master place, Spam Accounts Masterplace. Check out everything with the link below this video in the description. Now let's begin. So here is a blank screen which I want to present on. Okay, let's take a look on a very simple conditions. Let's take a look on $10K balance account where we are going to trade. That, that's what most beginners do without understanding All these things I will be talking in this video. Here's what they do. They go and they trade 1 lot or 2 lot or 5 lot, whatever. I'll take, for example, 1 lot. In 1 lot, each pip equals about $10. Depends on the currency you are working with, of course, but average about $10. Now let's take a look at the table. So imagine you are making money and you earn 20 pips profit, that's $200. And then you earned 40 pips profit, that's $400. But then came one bad trade where you lost 100 pips and you lost $1,000. So you see, you are making more actually profit, but you are losing money. And then you were— you won again. So let's say this time you won big, 100 pips. So you made $1,000. Then you made again 20 pips. Then you made again 50 pips. And then you decided, oh, there is a great opportunity on a daily chart, I go with that. And you lost 300 pips stop loss, which is $3,000. So you see, you won 5 trades, but you actually lost money because this is minus $4K and this $2,400, $3,000. You see, I hope my math is good. You are losing money by actually trading good because you made more profits. So your strategy is good, your analysis is solid, and it works for you. But the numbers never lie, and you cannot make profits when you deal with such approach. It's impossible. So what and how can you twist that? That's exactly what I want to talk in this video. So the first approach, if you prefer to work with fixed lot, let's say the same 1 lot as example. Where each pip equals $10, then at least choose a strategy that delivers you same stop loss, not different stop losses. You cannot risk 20 pips in one trade and 50 pips in different and 100 pips in different trade. It must be the same, like 20 versus 40 or 30 pip stop loss versus 50 profit, but the stop loss must be the same, and you then would have solid statistics. So let's say you have stop loss of 50 pips, okay? You choose a strategy and stop loss is always the same. Then you need to make sure your take profit is at least $50. I make bigger because I say at least, okay? Of course Talking about average, it could be sometimes 100, sometimes 60, sometimes 40. Okay, but average is more than 1 to 1 risk reward ratio. And here is why. Because if you work with 50% success rate, which means you are right one time, you lose one time, right one time, lose one time, and you work with more than 1 to 1 risk reward. So when you lose 50 pips, but you profit 51 pips, you see what happens? You are working with 50% success rate, but you are making money. Yes, in that case, it's small, it's little, of course. But if you lose 50, in the next trade you earn 60, and you lose 50, in the next trade you earn 75, and you lose 50, you earn 50. You lose 50, but you earn 100 thanks to a trade that gave you a good risk reward. Then the numbers would work in your favor, and you were risking here 250, and here it come up to 261, uh, 336. Anyway, I hope my math is good. Excuse me if not, it was quick math. So you see, you will make money here. You end up with a plus. Okay, I'm sure somebody's going to check the numbers right now and find a mistake. Again, apologies if, if there is a mistake. It was quick just to present an example. So thanks to that little trick of not taking trades Where your take profit is less than your stop loss, you twist that and work for you. But there is other problem which lead me to the second solution. What does one do if they love to cut earlier? Okay, so if you are among the traders who cut earlier, then the best solution for you is percentage. Risk. Percentage risk means you are risking the same percent, for example, 1% of a trade for every single trade you do, which means from $10K, 1% equals $100. If your stop loss is 50 pips and it has to be equal $100, then each pip Would be two dollars. If your stop loss is two hundred pips, but you cannot lose more than hundred dollars, then each pip is what? Half a dollar or zero point zero five standard lot. Okay. So you see what happens here. This will be zero two lot. What happens here, only the volume you trade changes. The money never does. So you can lose 50 pips or 200 pips, you will lose the same amount of money because the volume would change. So how does that solve the solution I just spoke before? If you cut earlier. So if you belong to the category of traders who cut earlier, then there is no problem with that. If some strategies, that's what they do. And one of my strategies based on cycles and divergences, that's exactly what I do. In order to deal with that properly, I start my trade with as positive as possible risk-reward. Imagine I start my trade with $100 risk, but my potential profit is $200. Then if I cut in the middle because there are signs against me, I already cut with $100. Does that make sense? It's all a control I have over the numbers. And if I start a trade— let me just erase that. Not with 200, but 1 to 4 risk reward. That also happens. And then I cut in the middle. I already am in $200 profit. So the bigger the risk reward you start with— and it's not just out of nowhere, of course it has to be connected to technical analysis and your strategy. You can't just say, okay, I'm risking 500 pips and I want to take 2,000 pips. It's not about what you want to take. It's about what your technique can deliver. Okay, and I'll go back to the charts for a moment. And imagine I'm saying, okay, now I want to buy, but here there is a major resistance. So buying versus a key resistance would be against me. That's not something I will be looking to do. But if I say, okay, here I'm looking for a sell here with stop loss above this high and profit Somewhere around this zone, and I say, aha, so now I can make a risk-reward working in my favor. Well, again, I'm not shooting in the dark here. I'm all relying on technical conditions, but make the numbers work in your favor. I'll go black screen again. Okay, so this table would help you to present it, and in that case, you can control the risk-reward. To be above 1 to 1 in average. If you keep 1 to 1.2 even in average and with only 50% success rate, you make money. You lose 1%, you make 1.2%. You lose 1, you make 1.2. If you increase that thanks to strategies, techniques, and analysis to 60%, That means you would— this is 60%. That means you will make much more money. But it all starts with controlling these numbers. Another very important factor here is if you rely on your techniques to step back off a trade. Okay, let me just erase that. Rely on the same techniques when you cut a profit. Rely on the same techniques to cut a loss. For example, and I'll go again to the charts. For example, let's say you rely on candle patterns. Okay, just just for example. Don't it's not a strategy I'm teaching here. Just for example. Okay, when you have moving average cross, you wanna get a bounce, and with a green candle. You buy, just for example. Okay, you are riding until there is a red candle, so you cut a profit. But then again, you want to bounce, and with the red— with green candle you buy, and with red candle you cut. Okay, and with green candle you buy, and with red candle you cut, and here will be loss. You see, so you can't keep the position here saying, ah, I just hope for good. If you rely on the same technique, again, it's not a strategy I'm teaching, it's just to present something, okay? But if you think about it, then in, in that case, I would make a good profit. In that case, I would make some profit, small one. In that case, I would make a little loss. But how it's important— let me go to blank screen— because if I was risking $100 dollars in one trade from what we saw, one example, right? I'll be doing like $150, was good risk-reward. Other one I'll be doing like just, oh, just $50. But at the loss, I would not be losing $100, I'll be losing like $20 or, or $50, but not $100 because I cut before thanks to the, the same technique. And this way You keep your losses not on $100. Of course, not all of them, but some of them could be saved if you stick to your technique. It's that simple to control the numbers. Okay, my friend, so that's what I wanted to present you and to make you think about it. How can you actually, actually Control the numbers and twist one of the worst known phenomena that cause traders lose money. Okay, it's all in the numbers. And as soon as you understand— because most traders, they fall in love with charts, only charts, indicators, support, resistances, and whatever, whatever, whatever. Okay, you have to control the numbers. You can't control the market. You can't. You can control the numbers. Control the numbers. Twist the logic you work with, or and and you will see the change. It's that simple. It's like if you think about it, you go out to a restaurant, whatever, and you don't have a budget. You just order and order and order and whatever you want. Then you come back home at the end of the month, you cut your hand like, oh my God, what just happened? How come in the restaurant instead of like $50 or $100 or $200, I spent $1,000? You have to plan your numbers and you have to control your numbers in trading. Especially to control the numbers, you need professional tools. Of course, you can do everything manually. There is one tool I have in my marketplace, and that's what I want to show you, and that could help you big time. Let me show you what I'm talking about— my risk manager. So just go to the blog vladimirbakov.com, go to my strategies and courses. In-house indicators. Here you would find many fantastic indicators and trading solutions. Scroll down, and this risk manager would help you to control your numbers with market orders, with pending orders, with buys, with sell, with one or multiple orders and so many other features. This is a must-have tool for professional traders. So that would be it for this video. I hope you find value in the explanation. If you do, I have a request from you, and I'm asking for your support. Please hit the like button. If you are new to this community, please subscribe to the channel. And thank you very much, of course, for your support. Few words as a feedback, as a support in the comment section would make a big difference. You know all the the way that the YouTube works, so your help is needed and very much appreciated in advance. Feel free to share this video with anyone on your community. I believe this video could help so many traders understand the numbers properly, and that's why I decided to record this video. And to explain how you can twist numbers working in your favor with, first of all, acknowledging and understanding how it works. I also want to take the opportunity to invite you to join our— in our trading family, the Home Trader Club, where you will get your access to our full comprehensive trading courses both for beginners and advanced. You will enjoy all our real-time trading education, real-time trading opportunities, our community, media center, and so, so, so, so much more. Join us with the link below this video in the description. Thank you for your time watching this video. Again, I hope you find value in it, and I wish you and yours all the very best. I'll see you soon with more videos. Bye for now. Good trading.