In response to some of your questions, I am going to share my thoughts on why you keep blowing your Forex account.
Let me start this way,
Maybe, one day as you are struggling to find out how to survive, you get the idea that you can become a Millionaire in a matter of weeks by trading Forex. You are invited to a seminar by a forex millionaire or a broker, you are advised to open a demo account then after practicing on a demo for weeks, you finally have the confidence to start trading on a real account.
Maybe, on the first day of trading, you made some good trading decisions and double your account, but then after a few minutes you lose everything. But instead of giving up, you remember the story of the forex millionaire who rise from zero to become a millionaire and deposit more money to your account but after a few minutes you lose your capital again.
If you smart enough, you will pause at this stage to find out why you keep blowing your forex account, but if you are not smart enough, you will fund your account and gamble again or worst still look for another struggler to manage the account for you.
This is why you keep blowing your Forex account
1. Your Broker
Every broker likes two set of traders: Those that sucks at trading and those that are very good at trading. If you suck at trading, they will be very happy when you lose everything so that you can continue to make deposit. If you are good at trading, they will inspire you to increase your lot size so that they can enjoy more money from commission and spread. If you are somewhere in-between, not good, not bad, you can be crush with spread in a very bad day.
If you want to know the broker I use, kindly click here. It helps if you choose a broker with a good spread from day one.
2. Lack of a trading plan
Lack of a proper trading plan is one of the reasons why you keep blowing your Forex Account. Most people just jump into trading without any plan. As a trader with over 10 years experience, I have been privileged to mentor some newbies who initially where caught up in the “Instant billionaire story from forex” web but start treating trading as a business after our interaction.
Forex is not gambling, if you don’t have a plan, you will continue to lose your money. It helps if you treat forex trading as a business and develop a clear path and plan for it.
3. Lack of Patience
Most newbies can’t stand to see their trades run in red. If they place a trade and it runs in red, they won’t be patient enough to follow the trade based on their analysis to allow it to hit their stop loss or TP, they will panic and close the immediately.
To be successful in trading you need to have patience, without patience you won’t last long in the business
4.Lack of Risk Management skill and Greed
Most newbies just rush into trades with big lots once they spot an opportunity forgetting that the market can retrace for minutes before going their direction. Lack of proper risk management and greed is one of the reason why you keep blowing your account.
If you want to be a successful trader, develop a good risk management skill and say no to greed.
They are many other reasons, but let stop here for now, if you have any questions, kindly drop a comment below.