How can exactly avoid the losses in Forex?

By having an entry and exit strategy that works, and sticking to it. That’s the best one can do.

 

Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective. It's important to use proper money management techniques and to start small when you go live.

 

For those who use stop loss, all just need to set a loss limit and forget about the position. The size of the stop loss must be selected for each trading instrument.

 

Preparation really needs to be both analytical and strategic before starting a trade.

 

The main reason why most Forex traders lose money is because instead of consciously controlling their emotions, controlling all aspects of trading, they become hostages of emotional trading.

 

One of the main rules of trading, which all tutorials persistently put into the heads of users, is the mandatory setting of a stop loss in order to limit potential financial losses.

 

I agree.

After you have done this, the most difficult remaining decision is when to close a profitable trade.

A tricky decision in the meantime is when and how much to add to a profitable trade

 

Wow I never thought about it that way. This actually makes sense because when I get down to trading, I keep trying to avoid trading based on my emotions but in that process I end up getting more emotionally influenced. Something to think about, thanks.

 

Idk I think it can also be because they are not ready for the market but they just jump into it without thinking properly. Emotions do add to it all. Happens to a lot of traders.

 

I think I know what you mean. This happens to almost everyone while trading. The more you consciously try to avoid emotions, the more you are likely to encounter them. I was making a few trades with Fxview a couple of weeks back and it was going well so I kept trading. And guess what, I ended up overtrading.