Blowing your trading account quickly

[SimplyFX]

Beginners make the same mistakes over and over again and never learn quickly from them. Instead the want quick recovery after losses abd end up blowing their accounts

 

[dangelo505775]

MONEY MANAGEMENT!!!! don't take trades unless there is a 1-4 risk to reward ratio, and don't use more than 3 % of your account on one trade, simple rules can save your account!

 

[sftex]

Beginners make the same mistakes over and over again and never learn quickly from them. Instead the want quick recovery after losses abd end up blowing their accounts

Have to be smart. Turned $27 to $412 and only withdrew $16 bucks, this was in 4 days. Started trading on the 4th of June, blew my account two hours ago. Key lesson there employ good money management rules. Take it slow, don't think you will build Rome in a day.

 

[mlawson71]

How did you blow your account? Did you open one large position or many smaller ones?

 

[tylite]

How did you blow your account? Did you open one large position or many smaller ones?

Risk management is 70% of success. Many new to trading skipping this very important lesson. Without risk management you're lost.

 

[Magloire]

I learned that the ennemies of success are impatient and greed. Those folks don't like to take the time to learn and think forex is a quick-rich scheme.

 

[mlawson71]

Those people quickly realize their mistake but that lesson is usually both very expensive and very unpleasant to learn.

 

[shan]

i would suggest to risk less percentage of the equity and try to ride small trends till you tip the account

 

[sftex]

How did you blow your account? Did you open one large position or many smaller ones?

I opened one extremely large position. Terrible decision but better to learn early than late with lots more money. I was humbled , the market will never be a friend

 

[alessandrofxtrader]

Beginners make the same mistakes over and over again and never learn quickly from them. Instead the want quick recovery after losses abd end up blowing their accounts

I think the basically problem is there is no mony management and the hurry to make money

 

[mlawson71]

I opened one extremely large position. Terrible decision but better to learn early than late with lots more money. I was humbled , the market will never be a friend

Oh, ouch. I've done that too actually, back as a newbie. It seems to be a common experience.

 

[a4b]

Have to be smart. Turned $27 to $412 and only withdrew $16 bucks, this was in 4 days. Started trading on the 4th of June, blew my account two hours ago. Key lesson there employ good money management rules. Take it slow, don't think you will build Rome in a day.

which strategy tho?

 

[Sean Wallace]

If you are new at forex market, at first you should study about market properly. You need to choose a good broker who will help you to operate your trade and give guidelines to you. You can get all the information about forex market from AtoZ Markets. They helped me in every step of my trade by giving all kind of information about forex. It is very effective and helpful for the new user.

 

[ilportofino]

MONEY MANAGEMENT!!!! don't take trades unless there is a 1-4 risk to reward ratio, and don't use more than 3 % of your account on one trade, simple rules can save your account!

Every single newbie trader should take into account the famous quote in Robert Miner's "High Probability Trading": if you are risking more than 2% per trade, and more than 6% at the same time (let's make it 10%), you should probably look for a full-time job. Most people are stuck the concepts of Risk Reward, Win Rate etc etc. If you are generating 25% P with 4-5 trades per month; there is no way that you will succeed. To able to determine whether your back test results (assuming everyone is doing back testing before going to the real account) will generate profits that you are looking for; then you should better look at the expectancy.

 

[sftex]

Oh, ouch. I've done that too actually, back as a newbie. It seems to be a common experience.

Haha yeah, seems we always seem to get a lil too excited at first but i'm way more composed now.

 

[sftex]

which strategy tho?

I was doing synthetic indices specifically boom and crash. So I figured out a way to catch spikes quite often with RSI and bollinger bands and also scalp the small candles. I scalped at the wrong time and that's when it went haywire

 

[Sherverty]

If you will make and repeat same mistakes again and again then it will be difficult for you to survive in the market so always look back and try to avoid same mistakes again.

 

[Valuewilson]

Have to be smart. Turned $27 to $412 and only withdrew $16 bucks, this was in 4 days. Started trading on the 4th of June, blew my account two hours ago. Key lesson there employ good money management rules. Take it slow, don't think you will build Rome in a day.

i know the feeling.

 

[mlawson71]

True. If one does not learn to learn from their mistakes they'd just keep losing their accounts. It turns into a vicious circle.

 

[ogma]

Beginners make the same mistakes over and over again and never learn quickly from them. Instead the want quick recovery after losses abd end up blowing their accounts

So true. When I began many years ago I definitely fell into that trap. Beginners should always paper trade first, but most don't have the patience to get good at it before risking real money. I know I didn't, but now I always paper trade a strategy before using it on my live account.