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Everybody takes a loss at some point in their trading activity, some more than others, but nevertheless learning how to take and manage your losses is a very important lesson to learn.

Most traders will get a run of successful trades, but as we all know all good things come to an end and eventually the trader will take a loss.  It is crucial not to lose your head and to stay calm.

It is imperative that traders cut their losses quickly, so that a small loss doesnt turn into a large one.  With small losses you can often outlast the

downward trend and be prepared when the upward climb comes around again.

Setting a maximum loss amount before you open a Forex trading position is a proven method for keeping losses small.

Make sure your maximum amount is capital that you are comfortable losing should you not do well with that trade.

Applying good money management rules to your Forex trading system will increase your success rate.  Keeping on eye on the market is also a good idea.

The goal is to keep your losses small, but at the same time its important to ensure that you open a large enough position to make a profit.  In the end, losses are unavoidable.  Take your loss with a grain of salt and move on.

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