Lessons you learn only when you blow up your account. | Forex Factory

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Lessons you learn only when you blow up your account.

  • #1
  • First Post: Edited 3:25am Nov 12, 2007 2:47am | Edited 3:25am
Hi Everyone,

I am certain that some of us have blown our account at one point or another during our Forex journey. If you have not, good for you.

Nonetheless, I'm setting this thread up so that our fellow traders can learn from this and not repeat our mistakes. No flaming please, let's be civil

1. No STOP LOSS (it has worked for me on a number of occasions i.e. stopped me out and then moved my way so I figured, hey why not let it run with no SL and hopefully it will retrace/reverse BUT trust me, that one that didn't go your way will blow your account).
2. Jumping in too early before the new hourly candle was formed.
3. Over trading (more than what my margin allows me).

These are my two top mistakes. I'm on demo now.
May the Pips be with You Let's Pimp some Pips!
  • #2
  • Nov 12, 2007 2:57am Nov 12, 2007 2:57am
I blow my account more then 10 times. why?

1. Greedy
2. Over trade
3. No money management

"Invest With The Insiders, Not The Masses" George Muzea
  • #3
  • Nov 12, 2007 2:59am Nov 12, 2007 2:59am
I've never blown an account but I've come close!!! Overtrading was my problem.
  • #4
  • Nov 12, 2007 3:01am Nov 12, 2007 3:01am
I have never fully blown my account but unfortunately lost most of my equity more than once.

my #1 mistake: hedging a drawn position to avoid using a stop loss and then managing drawn trades that got out of control.

In theory hedging can work well, one just needs to close the hedge in good profit (or at least when it's at breakeven) when price is reversing back in direction of the original (now drawn) trade. But in reality it's bad karma and chances are that you pick the wrong moments and end up opening a new hedge further away from the initial trade. And so on it goes until your equity is erased. NOT RECOMMENDED!
Consistency and patience is everything
  • #5
  • Nov 12, 2007 3:05am Nov 12, 2007 3:05am
While I have never blown my account, there are certainly days I wish the "BUY" and "SELL" buttons were wired backwards. If that was the case, the alleged 95% of the people who fail in FOREX would be winners. But even if they were wired backwards people would still fail. It really all comes down to proper money management, yeah, we've heard it a million times.

Most traders problems don't stem from poor entries, it stems from being over-leveraged and the unwillingness to accept a loss and move onto the next trade fresh.

While sorry about your account, think of it as the cost of tuition. Work on the trade discipline and re-fund your account when you have it licked.

Best of luck to you in the future.
  • #6
  • Nov 12, 2007 3:24am Nov 12, 2007 3:24am
Quoting The Guardian
While I have never blown my account, there are certainly days I wish the "BUY" and "SELL" buttons were wired backwards. If that was the case, the alleged 95% of the people who fail in FOREX would be winners. But even if they were wired backwards people would still fail. It really all comes down to proper money management, yeah, we've heard it a million times.

Most traders problems don't stem from poor entries, it stems from being over-leveraged and the unwillingness to accept a loss and move onto the next trade fresh.

While sorry about your account, think of it as the cost of tuition. Work on the trade discipline and re-fund your account when you have it licked.

Best of luck to you in the future.
Thanks dude

Yeah, I'm going back to demo and make it work, if it still doesn't, no point kicking myself to go LIVE.
May the Pips be with You Let's Pimp some Pips!
  • #7
  • Nov 12, 2007 3:25am Nov 12, 2007 3:25am
Quoting Geldmeister
I have never fully blown my account but unfortunately lost most of my equity more than once.

my #1 mistake: hedging a drawn position to avoid using a stop loss and then managing drawn trades that got out of control.

In theory hedging can work well, one just needs to close the hedge in good profit (or at least when it's at breakeven) when price is reversing back in direction of the original (now drawn) trade. But in reality it's bad karma and chances are that you pick the wrong moments and end up opening a new hedge further away from the initial trade. And so on it goes until your equity is erased. NOT RECOMMENDED!
Same here. I agree 100%.. I closed my hedging account and opened one where hedging is not allowed.
  • #8
  • Last Post: Nov 12, 2007 3:46am Nov 12, 2007 3:46am
1. i vote for that damned hedge, while i put grid, i put a hedge to counter all of that grid, it just never balanced nicely.

2. no more martingale, grid is just fine
3. don't sell in support and buy on resistance. especially for hedging.
4. it is a small equity after all
5. put sl where it shall be hit , just remember to reenter on better price or put it far far away on a price may never gone before
6. reduce clicking that mouse already
7. swap is your best friend, trend is your groupies.
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