As an advancing trader in FX trading, indeed I open a micro live account that I’m comfortable to lose through a/c blow up🙆 is it a routine that for one to become successful in trading you MUST blow an account?
It’s often said by many successful traders ,promoting this ,might make them look abit more "interesting"especially as they have turned the corner.there is probably people on here who spend hour s ironing their underpants and would not dream of blowing up an account ,who are also successful,
Its very common for new traders to blow an account because they generally don’t pick up a well-tried simple objective strategy and they don’t demo trade it before piling money in.
Blowing a live account is another learning lesson on the road to eventual success or failure.
I’ve blown a live prop firm account, cost me £200, which taught me to really get down to business, if I wanted to succeed. I set myself tough targets, by managing a $65 account for four months without blowing it. That was partially successful, although I realised I needed to FOCUS SOLELY on my tried and tested strategy and not on any others.
As at today, with plenty of correlation signals that need to be in synch, I’m hitting a green profit every month since the beginning of the year. I consider that I have reached the competent trader stage, no more, as there are plenty of new lessons to learn.
Best of luck.
So much encouraging, after blowing my first £100 account, I thought FX is not meant for me but after studying and listening to other traders from the forums I realized that blowing an account in early stages is normal. I started trading to become a millionaire hahaha that’s was my goal as a newbie after seeing successful traders display flushy supercars owning great properties 🙆:rofl: not knowing what it entails to become a profitable and successful trader.
no ,you don’t need to blow accounts to become successful in trading.
or , you don’t blow accounts to become any better in trading.
the key is :which part of trading you grill deep in. enter? SL ? MM?RRR? trading system?psychology?
the answer? sorry
To answer your question - NO.
Many people blow up their account because they do not know the fundamentals of trading, or do not understand how to incorporate them. Many open up 100 lot sizes, and more than they can afford. Bad luck or whatever, due to failure to predict the market and making good strategies, traders end up losing all their capital thereby blowing up their account.
When one comes across such a big loss, they are mentally distressed and force themselves to study harder for better trading. Thereafter, these people make good strategies.
It is not “money wasted on education”, because being uneducated you lost all the money. Instead, one would have used this money to purchase high-rated courses.
I started forex trading yesterday trust me Iwas in the verge of almost giving up
Go into a demo account. Don’t lose money. Don’t give up.
I don’t believe you MUST blow a trading account, however, it is relatively normal and does happen frequently. I myself haven’t been in this situation (after almost 2 years of live trading). I have to admit that I’m not sure how blowing up an account makes you a better or more successful reader To me, if you set up an account, and haven’t done the proper demo trading for your strategy, you are setting yourself up for failure. Why would you do this?! Do the proper back testing/demo trading etc until you are consistently profitable and THEN open a live account - doing exactly what made you profitable in demo. I can’t see why you would then fail and blow your account. Good luck
Why traders could fail and blow an account after going live is a lack of emotional control when real money is at stake. That’s the reality that traders need to manage. And some cannot do that successfully.
IMO, when traders open up a $200 account after being successful on a $2,000 demo account, IMO, they are in a whole new ballgame. Trading less, trading smaller lot sizes, reducing risk exposure, cutting losses, and letting winning trades run are all part of FOMO.
I agree Steve, I actually don’t understand why people open such small live accounts. As I mentioned in my previous post “do exactly what made you profitable in demo”. This would include the same starting balance, same lot sizes, leverage etc - everything! As soon as you change one parameter, you are not replicating what you did in demo and therefore you are uncharted territory. Not somewhere I would want to be with real money to lose!
Big True, I realize this early in my trading career but, implement the whole package it was tough.
Well lemme start with a golden Line here in the world of the finance, “This is. not financial advice . . . . BUT”
read in Morgan freeman voice
the best way to guaranteed a loss is to quit”. practice practice and practice. I use a paper money demo account before I go into the real thing. man ive been paper trading for about idk but wish me luck guys im gonna real Monet trade soon and am prepared to get margin called OOPS I meant heheh NOT get margin called lolllllllll…. Mistakes and failures are what paves the road my forex friend
best of luck to you
IMO, people open small accounts for one main reason:
They have little money to play with, and social media marketing hype tells them that they can make money quickly.
Example: a newbie opens a $200 live account after trading a $2000 demo account. The market is waiting for one ‘mistake’ maybe a higher lot size or mistaken S/L and he/she loses $50 bucks, which is 25% of the account gobbled up by the uncaring market alligator, instead of 2.5% burger & beer money on a $2k account.
Now the tide is heavy, only $150 balance to play with. That’s a mountain to climb already.
And you think they’re capable of replicating what they did in a demo account when they could have made several mistakes and shrugged it off as being unlucky.
BTW, once I ironed out my bullet proof strategy and focused on process for every trade, I’ve been consistently profitable this year. I hope it’s the same with you.
That makes sense. I just figure if you are going to open a live account with $200, then open your demo with $200! That way you can replicate your demo trading in live.
I too am profitable I had a return of 52% in my first year and I am sitting at 339% this year (I use the financial year in Australia which is 1 July - 30 June).
Excellent, well done. You should teach on this site…
Thank you, but I don’t think so! I still feel like I am learning. I did the whole Baby Pips course and took about 120 pages of notes. I then went through the notes and condensed them to about 40 pages. I developed a strategy and back tested it (that took a while) and then demo traded it for about 6 months before going live. The aforementioned probably took 12-18 months all up. That’s a lot of prep work, but I think it was worth it. Oh, and I’m a financial adviser so I have reasonable knowledge of markets etc. I think a lot of people don’t want to put in that leg work first and think they are going to make millions straight away. It’s a bit like someone finishing school and wanting to be a CEO without going to university/college/trade school etc and working their way up. Sadly, there is a generation of people like that (here in Australia anyway). They don’t want to work to achieve anything, they expect it to be handed to them. That’s my two cents!