How to control the lose , as a newbie?

<p id="isPasted">As a newbie forex trader, it is important to control your losses. Here are some tips:</p><ul style="margin-bottom:0cm;" type="disc"><li style="margin-top:0cm;margin-right:0cm;margin-bottom:7.5pt;margin-left:0cm;line-height:normal;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;">Use stop-loss orders.&nbsp;A stop-loss order is a market order that is placed to close a trade at a specific price. This order is placed below your entry price if you are buying and above your entry price if you are selling. Stop-loss orders can help you to limit your losses if the market moves against you.</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:7.5pt;margin-left:0cm;line-height:normal;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;">Risk only 1% of your account on any trade.&nbsp;This means that if you have a $10,000 account, you should risk no more than $100 on any one trade. This will help to protect your account from large losses.</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:7.5pt;margin-left:0cm;line-height:normal;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;">Use a demo account to practice trading before you risk real money.&nbsp;A demo account is a virtual trading account that allows you to trade with fake money. This is a great way to practice trading and learn how to use stop-loss orders and other risk management tools.</li></ul><p>Here are some additional tips for controlling your losses as a newbie forex trader:</p><ul style="margin-bottom:0cm;" type="disc"><li style="margin-top:0cm;margin-right:0cm;margin-bottom:7.5pt;margin-left:0cm;line-height:normal;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;">Have a trading plan and stick to it.&nbsp;Your trading plan should outline your entry and exit criteria for each trade. It should also specify how much money you are willing to risk on each trade.</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:7.5pt;margin-left:0cm;line-height:normal;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;">Don't overtrade.&nbsp;It is better to take fewer trades with higher probability than to take many trades with lower probability.</li><li style="margin-top:0cm;margin-right:0cm;margin-bottom:7.5pt;margin-left:0cm;line-height:normal;font-size:15px;font-family:&quot;Calibri&quot;,sans-serif;background:white;">Don't let your emotions get the best of you. It is important to stay disciplined and stick to your trading plan, even if you are losing money.</li></ul>

<p>As a new trader, the most effective way to control losses is by prioritizing disciplined risk and money management over chasing profits. Instead of trying to eliminate losses entirely, you must accept that they are a normal part of trading and focus on keeping them small and manageable.&nbsp;</p><p><strong>Establish a structured trading plan </strong></p><ul><li>Create a rule-based plan. Before entering any trade, define your entry and exit points, including your profit target and stop-loss level. A clear plan removes a lot of emotional impulse from your decisions and forces you to think more logically.</li><li>Don't "bet the farm" on one trade. Diversify your trades across different assets or sectors to reduce the impact of a loss on any single investment.</li><li>Avoid overtrading. Focus on quality over quantity. Trading too frequently, especially without a solid setup, increases your exposure to risk and the chance of making impulsive errors. </li></ul><p><strong>Master position sizing and stop-losses </strong></p><ul><li>Follow the 1-2% rule. Never risk more than 1% or 2% of your total trading capital on a single trade. For example, with a ₹1,00,000 account, your maximum loss on a single trade should be no more than ₹1,000 to ₹2,000. This rule makes it nearly impossible for one or two bad trades to wipe out your entire account.</li><li>Use stop-loss orders. A stop-loss is an order that automatically closes your position when it reaches a preset price, limiting your potential loss. Place your stop-loss based on technical factors, like support levels, rather than just an arbitrary percentage.</li><li>Use take-profit orders. A take-profit order is a predetermined level where your profitable trade will automatically close, helping you secure gains and prevent a winning trade from becoming a loser.</li><li>Set a risk-reward ratio. For every trade, ensure your potential profit is at least two or three times greater than your potential loss (e.g., a 1:2 or 1:3 ratio). This ensures that even if you have more losing trades than winners, your gains will still make you profitable in the long run. </li></ul>