Even the greatest traders have blown their account one time or another like the Legendary Jesse Livermore. So the important is not to be out of the game that is have an small account relative to your wealth so that you can blow it for just learning purpose
Only once you master you would have a normal account.
Myself I just open a tiny account on forex whereas I have also a true account at another broker, I don’t even use it at the moment because I know I will probably blow it the first time when experimenting
Try to trade 1,5,15 Minutes Charts
[B]5 and 15 can be traded successfully - it’s all about your strat and skills.[/B]
Martingale - 100% Gurantee
Ignoring Money Monagement
Risk to Reward ratio below 1:2
Grid Trading - It fails in trending market
Simple Moving Average cross overs
[B]Yes and no. If you just follow a simple cross you will likely suffer a big drawdown but crossovers can be used to look for an entry point on a lter retrace.[/B]
Using a commercially available Expert Advisors
Exit at wrong time - Exit is more important than Entry
[B]Not necessarily. Efficient entry can be just as important.[/B]
Not sticking to your own strategy
Random Entry
Not using Stop losses
Do not bother to understand “Buy Stop”, “Sell Stop”, “Buy Limit” and Sell “Limit Order” order types
Try to trade 1,5,15 Minutes Charts - [B]You can use 15m for entries and 1m-5m for exits very successfully.[/B]
Martingale - 100% Gurantee - [B]Need a huge amount of capital for this, depending on what your initial risk was.[/B]
Ignoring Money Monagement - [B]Definitely.[/B]
Risk to Reward ratio below 1:2 - [B]1:1 is just as good if you have a 60% win rate or higher.[/B]
Grid Trading - It fails in trending market - [B]It wont blow your account if you follow MM.[/B]
Simple Moving Average cross overs - [B]Combining this with simple price action will weed out the bad trades.[/B]
Using a commercially available Expert Advisors - [B]Definitely.[/B]
Exit at wrong time - Exit is more important than Entry - [B]Equally as important. Learn to cut losses short and let profits run.[/B]
Not sticking to your own strategy - [B]Definitely. [/B]
Random Entry - [B]Definitely. [/B]
Not using Stop losses - [B]Definitely. [/B]
Do not bother to understand “Buy Stop”, “Sell Stop”, “Buy Limit” and Sell “Limit Order” order types - [B]Honestly, these didn’t make much sense to me either when I first started. It sounds confusing in text but a nice picture makes up for that. I’ll see if I can doodle one up later on.[/B]
Well for me personally it’s first. Also I would add blowing account by accident (broker software freezing) for any trader that last long enough there’s a huge chance for this to happen so a second broker accessible by phone is mandatory.
To avoid that, don’t trade with a Market Maker account. Go ECN.
I’m not saying all market makers do it, but some which are known by the term “Bucketshop” (All your money goes in the broker’s pockets) will do all sorts of dirty tricks, up to and including platform freezing at major news to either protect their dealing desk from damage, or at worst, clean out your account.
you’re confused and still don’t know what it works??? now you confused me you already know how to blow-up an account/ equity so just do the opposite instead and there you go, you’re on the right path, considering you will stick to whatever strategy/ies you will come up with.
you can add to that:
you need balls of steel; a never say die kinda guy
learn to trade price action
feel the pulse of the market, and know her moods and direction
trade when there is strong volatility and momentum
know the right pair for you
know what timezone tradeable for you
avoid joining forums (like this )
read almost anything about maro to micro economics
don’t trade news releases
lern to take/ accept loss
cut losses to minimal, and let your winner run (ride the trend until it dies)
always trail your stops
*i leave it blank intentionally for you to list your own ideas too
remember money management… having said that, better off to start on demo and when you’re ready, open a micro mini account.
I have to disagree with #10. I read a thing where, to prove a point this guy at the same time every day would buy or sell. If he went long the previous day today he would short, and vise versa. Not that his trades went well but his trade management and money management proved effective. Problem is I don’t remember seeing where it was.
He focused on cutting losses short and letting the winners run. He had more then 20 some odd triggers to exit a trade too. It was a very interesting read. I think he netted maybe 2 or 3% over 6 months when I was reading it. IIRC he was going to do it for a full year.
His biggest thing was not to focus on a perfect entry but rather focus on managing the trade correctly, and keep risk low enough. It was after I read his piece and thought about it that I started to become profitable in my demo. I also stopped trying to pick tops and bottoms, go figure. I went live shortly afterwords and did good until a string of loosing trades got me emotional over my money, then I started stupid trading. Now I cant remember how I traded before I got emotional, and just blew up another account over 3 weeks. :eek: On the plus side I stayed detached.
Try to trade 1,5,15 Minutes Charts 15 is okay to me.
Martingale - 100% Gurantee true.
Ignoring Money Monagement true.
Risk to Reward ratio below 1:2 No, depends on signal quality.
Exit at wrong time - Exit is more important than Entry Shouldn’t the strat take care of?
Not sticking to your own strategy true
Random Entry true
Not using Stop losses true
Do not bother to understand “Buy Stop”, “Sell Stop”, “Buy Limit” and Sell “Limit Order” order types If your strat uses market orders, this is not relevant.
