Blowing a live account

Beginners usually blow their account because of lack of proper knowledge and profitable strategy. However it is perfectly normal to do so; in forex trading we learn majorly from our mistakes. Also, most of the traders don’t practise in a demo account before moving to a live account; therefore, they don’t know the market behaviour and end up blowing their account.

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Thank you , I’m humbled

Cheers :clinking_glasses: a very awesome :+1: piece of advice, so getting enough information and knowledge is key.

imo it’s not neccessary to blow your account. However, if you are still learning on a live trading then there’s definitely a risk of blowing it. I would just suggest keeping the fund minimal like $100 at best so you arent loosing to much.

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never give up, FX trading is a journey that you’ll experience many hurdles on your way but if you master you’ll reap

It is about learning more than about blowing your account. Blowing your account will make you learn so many new things on the way.
But this is simply not a good idea, even if it seems feasible. So practise on a demo account until perfection ensues.

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Well, there is no written or unwritten rule that says you must blow up your live account to mark the right beginning for success in forex trading. It is just very common and normal to blow up your first trading account. Many successful traders have blown up their first live account, but it is better to make every possible effort to protect your account no matter how small it is. It will be a good practice to develop the kind of attitude and mindset that you will require for being a successful trader.

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I do not believe it is a hard and fast rule that a person must blow his account at least once so that he gains consistent profits. Some people have blown their accounts, and gained good profits after. But there are also some people who have blown their accounts but still did not make good profits, or suffered more losses than profits. Hence, it is best not to risk blowing your account. It does not increase the potential reputation of a trader, nor is it fun to lose all your trading capital.

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The only acceptable reason for blowing up an account should be a Black Swan event. Something so rare that you can’t plan for it and so serious that it wipes out your risk management tactics.

Price movements on an interest rate change or unemployment data or inflation estimate announcements are not Black Swan events.

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Blowing a live account just means that you need to work hard on your trading knowledge. And I think failures let us know the potential areas of our improvement. But it does not mean that one has to lose in order to learn. Learning comes with time too. Success also teaches us something new. Failures obviously impact us more than success because we are oriented in that way.

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Actually most new traders blow up their first trading account. But you don’t really need to actively try to blow up your first account in order to become successful. Even if it’s a micro account, try to trade seriously. It will help to prepare and train your mind for bigger trades. If you happen to blow up the account by chance, that’s pretty normal and common. Always focus on risk management and keep learning. Good luck!