Few Ways of Not Blowing Your Account
Trading is not the safest profession in the world but you indeed earn a lot from this market and you can reduce the risk. Trading is related to real money and this what makes it so risky that a simple mistake can lead you to lose your trading capital. Arranging a capital is so hard that you can be sure if that if you blow your trading capital once than you must not able to gather another capital from trading again. So we always encourage you to be a safe and smart decision when you are making any trading decision. By reading this article you can save your account from blowing up.
Don’t copy-paste – Do you analysis
Often new traders who just joined the trading industry with some demo trading experience try to follow other successful trader’s analyses. It is nothing but a wrong decision and you will understand it later. If you won’t see you as a successful man in life then at first you must need to avoid following others and if you do so no matter which profession you are in, you will be successful someday. An experienced trader who is trading for a quite long time must have a big trading capital but as a new trader, you might not have a big trading capital like him. So if you try to copy his entries along with the lot size take profit and stop loss level then your account might not be alive if anything goes wrong. Always try to do your research and analysis before making a trading decision and it is ok to follow a successful traders trading style to modify your strategy.
Leave your emotions at the door
If you are a trader then you can already understand the power of emotion that can affect your trading life. Trading is no place for emotional peoples who cannot take a few losses rather than just try to recover what he loses instantly. So if you want to be successful in trading life than you must need to take all losses positively and should work on your mistakes so that it may not occur again. So we will suggest you leave your emotions at the door whenever you are going to sit in front of your trading platform. Because if you can channel your emotion in a positive way than trading will be much easier for you. The elite Aussie traders never take trades with emotions. Use this link and read articles at Saxo to get an idea how the smart investors take trades with logics.
Consistency is must
Most of the trader joins this industry to become rich but it is not possible to be rich overnight. You must need to take one step at a time rather than just rush into making any decision. Any traders who are not consistent enough will blow his account 2 or 3 times and will quit trading by cursing it. So you have to move with a plan like is you earn $500 when you just join trading then it is possible. But if you want to earn $100,000 from the first month of trading then you can be sure that you will blow your account in a few days. So move smartly and gradually try to increase your earnings so that you might not need to be afraid of losing your whole trading capital.
Small lot size
Whenever you are thinking about investing an amount of capital to your trading account then you must need to fix a lot size for all your trades. You must not increase this lot size no matter how sure you are with your analysis. But we will suggest you lower your lot size in that way you might earn low profit but the chances of blowing your trading capital remain very low. Making small profits is better than losing your whole trading balance.
So in the end we are going to say that always try to have safe trading experience. And never take risk more than you can handle.