How to Blow Your Account | Step-By-Step Guide

Hello, Traders

What follows is a discussion of the behaviors, attitudes, and worldviews that will ultimately drain your bank account.

1. Trades are based on emotional decisions

Each trading position needs to have a rationale.
An expert trader’s entry is predicated on hard, cold facts, while an amateur trader’s reasoning is guided by gut instinct.

2. Stop loss placement is for losers

While trading, many traders never bother to set a stop loss. Remember that missing just one trade could be the end of your account.

3. Set unrealistic goals

Many novice traders believe that the size of their equity does not reflect their prospective profits. False inferences of many kinds can be drawn from such reasoning.

Anyone who opens a trading account with $100 and expects to buy a LaFerrari will quickly find that their money is gone.

4. No time for trade journaling

So why waste time on a trade journal?! The time spent on it is completely pointless.
Keep in mind that your trading log can serve as an invaluable educational resource. By constantly evaluating your choices, you can find the weaknesses in your plan and work to improve them, so maximizing your future benefits.

5. Trading plan is for fools

Many traders I know trade do it without any sort of plan in place.
Keep in mind that the trading plan will serve as your guide. Not having that makes it next to impossible to become a successful trader.

6. Blindly following other’s view

Learning to trade entails studying the thought processes of successful traders to help guide your own decision-making. If you blindly follow them, without questioning or analyzing why, you will not only fail to learn from your actions, but you will also develop a dependency. When you lose, you blame the other team instead of yourself.

Your efforts will be fruitless if you take that tack.
Before blindly following any trader, you should train yourself to take responsibility for your own trading decisions and conduct your own analysis.

7. Who needs economic data

As we’ve talked about many times, the market is driven by what we call “fundamentals.” If you don’t pay attention to trends and the world situation and don’t read the news, the market will always trick you.

8. Indicators are the magic pill

A lot of traders I know spend thousands of dollars trying to find a “magic indicator” that will make them a lot of money.
Indicators are just one of the tools in your toolbox. Its purpose is to add a few small clues to your analysis.
If you overestimate how important indicators are, you’ll probably blow your account.

9. Not investing in education

Instead of investing in their expertise, many traders are shelling out cash for flashy trading aids like signal providers, robots, and indicators.
But the fact remains that education is the key to independence, and that knowledge alone is the key to freedom.

10. Back testing is pointless

Many traders who experiment with new approaches choose to forego the necessary back testing.
Keep in mind that back testing is the most reliable method for determining whether or not a plan is effective, and it may help you save both time and money.

11. Paper trading does not make any sense

The same applies to simulated trading on paper. Most traders jump right into real money trading without first trying out a demo account.
Demo trading, on the other hand, is the ideal, risk-free resource for gaining familiarity with the market.

These eleven myths and misconceptions are, sadly, widespread. Examine your trading habits and make sure you are not guilty of any of these common blunders.

What else would you include on that list?

Please use the comments box to ask me whatever you’d like.
A like would be greatly appreciated.

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Thanks for your constructive criticism! Really most of the traders try to follow these ways & as a result a number of new traders are the losers!

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Interesting title that really caught my attention. I had a good laugh. but everything you said was right on point :+1:

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Especially using stop loss is key, you can never tell which way the trade will. Always use it.

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Great list.

Staying completely bound to losing trades.

Revenge trading after taking a huge loss.

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Comment from a broker firm CEO when asked are people good traders?

His response - yes and no.

Yes, when traders have more profitable winning trades than losers.

No, when they let losing trades run longer than winning ones. And when they add to losing trades.

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No doubt o it; actually SL is a part of money management plan! In addition, money management is the key here!

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Haha! Who else had followed all the steps 🫢?

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You just nailed it; actually when I was a new trader I followed the same! And as a result I lost so many times in the beginning! In addition, this is very common to the all-new traders!

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Did you blow your account? I’ve blown mine several times😂And I was confused reading the title of this thread ‘how to blow your account’. I was like why is @PrinceSajir giving tips to traders on how to blow their accounts. But, it all got cleared when I saw the content :blush:

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how to dicsiplan in trade

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I look forward to keeping this in mind at all times…Thank You