Why do forex traders blow accounts

[Jameson wc]

Why do forex traders blow accounts. Is it due to strategy or due to proper risk management. Let's hear your own side of the story as of why this things happens

 

[ForexLose]

for me , my account got blew away dues to bad time of gold trade.

 

[pippin]

Why do forex traders blow accounts. Is it due to strategy or due to proper risk management. Let's hear your own side of the story as of why this things happens

In my opinion, forex traders blow their accounts primarily due to a lack of effective risk management, emotional decision-making, and trading without a clear strategy. Successful trading requires disciplined execution of a well-defined plan, alongside continuous learning and adaptation to market conditions.

 

[antoni1]

Most traders haven't experienced enough in the markets

 

[John1965]

I use a Martingale strategy. Knowing this is risky I have made additional software. If my Equity in MT4 is less then 50% and I might be sleeping while my EA is active, the EA places counterorders in the opposite direction. In this way I can decide how to handle this as soon as I see it and take the necessary actions. It could also happen the price (in my case of gold) changes rapidly and far, the counterorders will "lock" my account again to make sure as soon as I see it I can take action. The hope is this will not happen more then 1 in the 3 months.

 

[Fin_Trader]

The main reason is that many beginners come to Forex to earn a lot of money in a short period of time. This leads to overestimation of risks and very aggressive and dangerous trading, which inevitably leads to a rapid loss of the deposit. Haste and greed destroy such traders.