How to BLOW your account 14 replies
Why do traders blow a winning account? 31 replies
How Not To Blow Out Your Account In A Week 18 replies
DislikedI was on my way to blowing out my account a long while ago. I simply jumped in too fast and tried to apply a simple scalping system to my trades without taking into account what my psychology would do to me. I also had no concept of money management...NONE! I jumped into the market with a $5000 account looking to make $20/pip right away.
DislikedExactamundo Umairs. It's a common mistake I think and it's a silly one as well. I came to forex from stocks and I think what really attracted me right away was the trading hours and the incredibly liquidity. I found it irresistible and so I jumped in right away.
Thusly, I quit predictably almost lost all my money. It's easy to jump into forex and it's even easier to lose all your money really quick.
Always develop a money management plan that suits your level of acceptable risk. Always demo trade. Always read extensively about a market that can wipe out your account with just a 0.05% move in many cases...not at all like stocks.
No need to roll your eyes...I know it was a noob mistake but thankfully I'm no longer a noob...still a novice but no longer clueless.