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  1. #1
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    Lightbulb Wrong decision creates the huge loss in the trading ?

    I think the decision making is very important in the forex trading business and i think if we make the wrong decision then it will cost us the big losses in the trading so we need to avoid the wrong decision and make the proper analysis of the market and mange the risk in the trading.

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  3. #2
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    That is why there is always the need to plan well. Making a wrong trading decision affects the whole trade and the whole preparation we have been making. Forex is like other businesses too which require that we plan for it and towards making something good out of it. There is no way a trader can become successful in Forex if he has no thought after plan because it is the main thing leading to errors.

  4. #3
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    As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report.
    With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion.
    Nonetheless, the sharply higher loss totals will feed a debate over how strictly large financial institutions should be regulated and whether some of the behemoth banks are capitalizing on their status as too big to fail to make risky trades.
    JPMorgan plans to disclose part of the total losses on the soured bet on July 13, when it reports second-quarter earnings. Despite the loss, the bank has said it will be solidly profitable for the quarter — no small achievement given that nervous markets and weak economies have sapped Wall Street’s main businesses. To put the size of the loss in perspective, JPMorgan logged a first-quarter profit of $5.4 billion.
    More than profits are at stake. The growing fallout from the bank’s bad bet threatens to undercut the credibility of Mr. Dimon, who has been fighting major regulatory changes that could curtail the kind of risk-taking that led to the trading losses. The bank chief was considered a deft manager of risk after steering JPMorgan through the financial crisis in far better shape than its rivals.
    “Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner.
    A spokesman for the bank declined to comment.
    In its most basic form, the losing trade, made by the bank’s chief investment office in London, was an intricate position that included a bullish bet on an index of investment-grade corporate debt. That was later combined with a bearish wager on high-yield securities.
    The chief investment office — which invests excess deposits for the bank and was created to hedge interest rate risk — brought in more than $4 billion in profits in the last three years, accounting for roughly 10 percent of the bank’s profit during that period.

  5. #4
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    As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report.
    With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion.
    Nonetheless, the sharply higher loss totals will feed a debate over how strictly large financial institutions should be regulated and whether some of the behemoth banks are capitalizing on their status as too big to fail to make risky trades.
    JPMorgan plans to disclose part of the total losses on the soured bet on July 13, when it reports second-quarter earnings. Despite the loss, the bank has said it will be solidly profitable for the quarter — no small achievement given that nervous markets and weak economies have sapped Wall Street’s main businesses. To put the size of the loss in perspective, JPMorgan logged a first-quarter profit of $5.4 billion.
    More than profits are at stake. The growing fallout from the bank’s bad bet threatens to undercut the credibility of Mr. Dimon, who has been fighting major regulatory changes that could curtail the kind of risk-taking that led to the trading losses. The bank chief was considered a deft manager of risk after steering JPMorgan through the financial crisis in far better shape than its rivals.
    “Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner.
    A spokesman for the bank declined to comment.
    In its most basic form, the losing trade, made by the bank’s chief investment office in London, was an intricate position that included a bullish bet on an index of investment-grade corporate debt. That was later combined with a bearish wager on high-yield securities.
    The chief investment office — which invests excess deposits for the bank and was created to hedge interest rate risk — brought in more than $4 billion in profits in the last three years, accounting for roughly 10 percent of the bank’s profit during that period.

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    i think greed and poor money management are the main causes for loss in forex trading. to be a successful forex trader we should control our greed. greed is very harmful for forex trading. we should learn about proper money management also. proper money management helps us to reduce risks in trading. we should also develop our trading strategy too to avoid loss in business.

  7. #6
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    Yah! I think wrong decision make lose our trade. greed and poor money management are the main causes for loss in forex trading. to be a successful forex trader we should control our greed. greed is very harmful for forex trading. we should learn about proper money management also. Nonetheless, the sharply higher loss totals will feed a debate over how strictly large financial institutions should be regulated and whether some of the behemoth banks are capitalizing on their status as too big to fail to make risky trades.
    JPMorgan plans to disclose part of the total losses on the soured bet on July 13, when it reports second-quarter earnings. Despite the loss, the bank has said it will be solidly profitable for the quarter — no small achievement given that nervous markets and weak economies have sapped Wall Street’s main businesses. To put the size of the loss in perspective, JPMorgan logged a first-quarter profit of $5.4 billion.

  8. #7
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    Trying to pick tops or bottoms
    Many new traders try to pick turning points in currency pairs. They will place a trade on a pair, and as it keeps going in the wrong direction, they continue to add to their position being sure that it is about to turn around this time. If you trade this way, in the end you end up with much more exposure than you planned, and a terribly negative trade.

    Solution:
    Trade with the trend. It's not worth the bragging rights to pick one bottom out of 10 attempts. If you think the trend is going to change and you want to take a trade in the new possible direction, wait for a confirmed trend change.


    Refusing to be wrong
    Some trades just don't work out. It's human nature to want to be right, but sometimes we just aren't. As a trader, sometimes you have to just be wrong and move on, instead of clinging to the idea of being right and ending up with a blown account.

    Solution:
    It's a difficult thing to do, but sometimes you just have to admit that you made a mistake. Either you entered the trade for the wrong reasons, or it just didn't work out the way you planned it. Either way, the best thing to do is just admit the mistake, dump the trade, and move on to the next opportunity.

  9. #8
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    Yes the poor money management and greed is the main cause of loss in the trading and it will come in the forex trading when we do the wrong decision in the trading so that's i think we need to improve our decision skills in the trading and try to mange our risk in the forex business.

  10. #9
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    yes it is 100% true .If you make wrong decision in the business in a hazards you will certainly bear the great loss and that loss may affects you business permanently.So taking decision is a an important part in the Forex trading.

  11. #10
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    Wrong decission bring about that loss that is for example you will see that market will be going uptrend and you place a sell order what you automatically get is loss and that is the feedback of wrong decission so we need to be very excellently careful with our trade
    Your best services.

    http://www.banktheories.com

  12. #11
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    Yes, but sometimes when we are luck, we will not get loss. But surely, we should not rely on luck only. But if we make wrong decision, we can use it as lesson. I think make mistake is a common thing, but we must try to learn from our mistake. The biggest mistake is when we do not want to learn from our mistake.

    "Invite your friend, get $10 and win $5,000"

  13. #12
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    Shakeel Ahmad
    06-12-2012, 08:58 PM
    If we start this trade with a cool minded, a power of decision making and with good experience then we achieve a goal in this trade. In my thing wrong decision can create a loss in this trade while this trade is very profitable. What your thinking about this burning topic.
    Yaqub777
    06-13-2012, 02:50 AM
    Forex trading is a risky business and decision making plays a key role in reducing loss and avoiding risk in this business. In this business your knowledge, skills, decision making, experience and hard work has a great role for success. Any decision made without proper analysis of market can lead to you loss in this business.

    Along with better decision making, hard work and patience plays very important role. Do not be hurry in making decisions in this business. Sometimes we get profits and become over confident to earn huge profits within short period of time. This hurry may lead us to wrong decision and heavy losses.So wise thinking in making right decision will give us profits and wrong decision create heavy losses to us in this business.
    profitsbuzz
    06-13-2012, 05:40 AM
    Forex trading does moves very fast, within a split second, a winning trading could turn into a losing one and a losing one could become something that wipe out your account. That is why you need to be clear minded and level headed when you make decision when you start forex trading. Plus if you have make decision before you even trade, you need to have a stop loss before you even start to trade, because that decision would help you from getting huge losses.
    waqas iet
    06-13-2012, 06:42 AM
    Forex trading is a business full with risks and it also make moves very quickly and sharply so the trader in return have to be very careful and fast in making decisions that are also correct and right at the perfect time.In Forex trade wrong decisions are always the loss creator for trader.Some times wrong decisions can give you heavy loss that are enough for you to left this trade.The trader must be very keen in making decisions.
    wahaj
    06-27-2012, 10:02 AM
    This does happen in every business that when ever we take any wrong decision we have to suffer loss ...This is because our whole strategy reverse and so we dont have any idea of how to overcome the situation and we suffer loss in the end.

  14. #13
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    Shakeel Ahmad
    06-12-2012, 08:58 PM
    If we start this trade with a cool minded, a power of decision making and with good experience then we achieve a goal in this trade. In my thing wrong decision can create a loss in this trade while this trade is very profitable. What your thinking about this burning topic.
    Yaqub777
    06-13-2012, 02:50 AM
    Forex trading is a risky business and decision making plays a key role in reducing loss and avoiding risk in this business. In this business your knowledge, skills, decision making, experience and hard work has a great role for success. Any decision made without proper analysis of market can lead to you loss in this business.

    Along with better decision making, hard work and patience plays very important role. Do not be hurry in making decisions in this business. Sometimes we get profits and become over confident to earn huge profits within short period of time. This hurry may lead us to wrong decision and heavy losses.So wise thinking in making right decision will give us profits and wrong decision create heavy losses to us in this business.
    profitsbuzz
    06-13-2012, 05:40 AM
    Forex trading does moves very fast, within a split second, a winning trading could turn into a losing one and a losing one could become something that wipe out your account. That is why you need to be clear minded and level headed when you make decision when you start forex trading. Plus if you have make decision before you even trade, you need to have a stop loss before you even start to trade, because that decision would help you from getting huge losses.
    waqas iet
    06-13-2012, 06:42 AM
    Forex trading is a business full with risks and it also make moves very quickly and sharply so the trader in return have to be very careful and fast in making decisions that are also correct and right at the perfect time.In Forex trade wrong decisions are always the loss creator for trader.Some times wrong decisions can give you heavy loss that are enough for you to left this trade.The trader must be very keen in making decisions.
    wahaj
    06-27-2012, 10:02 AM
    This does happen in every business that when ever we take any wrong decision we have to suffer loss ...This is because our whole strategy reverse and so we dont have any idea of how to overcome the situation and we suffer loss in the end.

  15. #14
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    Everybody know about this wrong decission in forex trading market will always creat loss to loss infact more loss than you can think here as for me i keep on practice to enhance my personal knowledge for future trade
    Your best services.

    http://www.banktheories.com

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    depending on how traders manage the risk. if traders risking big margin in single trade, loss will give high damage to the capital. but if traders risking small margin per trades, they'll get small loss which it cause no harm to the capital.

  17. #16
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    That is what I think wrong decission can make the trader to run into huge loss in forex trading market to be sincere so what I need and know is that before any decission is been made the trader have to be able to make good comfirmation with regard to that
    Your best services.

    http://www.banktheories.com

  18. #17
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    That is very true. If the trader takes wrong decision in forex, it will make or her to have huge losses. It is good that the trader should learn how to plan himself or herself during trading so that he or she will be able to take a good decision and to be able to understand his or her trading very well.

  19. #18
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    many traders know that forex risky and complex. there are no room to small mistake to be occur. being aggressive could lead traders to gain high income. but if loss occur, aggressive approach will make capital get high decrease. require to manage the risk by set proper risk management calculation.

  20. #19
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    in absolutely sure cases just following we come about to generally be luck, We're going to not likely get fall. But absolutely, we mustn't rely on luck only. But Any time we make Solely Erroneous best conclusion, we are able to take advantage of of it as lesson.

  21. #20
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    Making a Faulty investing summary has an impact on The whole trade and also your complete scheduling we are basically earning. Forex is like other businesses A great deal also which demand that we get ready for it and in direction of creating some thing great past it.

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