True. A lot of traders blow through more than one account before they learn how to trade profitably. The problem is that always hurts when it happens.
If you are going to go at it again, don’t just persist.
Go over the bad trades to analyze and understand what was wrong with them and start tweaking your system.
But if you do not have a system and just trading by feel or gut, you won’t have anything that you can base on to make an analysis with.
After that if you trade live again invest only half of what you invested before and if you fail again, invest half and so on and so forth. Do not increase the deposit amount until you can prove to yourself you can profit otherwise use “lowering your investment” as a penalty for blowing up accounts.
Learning forex requires a lot of grinding and woodshedding, so if you are not ready to do them, forex is not for you.
Persistent = Fail - Analyze - tweak - Fail - Analyze - tweak - Fail - Analyze - tweak - Fail - Analyze - tweak - Fail - Analyze - tweak - Fail - Analyze - tweak… etc. until you make it.
Fail doesn’t have to be blown up accounts, it could just be one of many trades that didn’t go well.
Analyze each bad trades before you blow up your account.
Cheers,
TC.
P. S. The hard truth is you won’t learn much from demo’ing because psychology is just not there, you would only be cheating to yourself. You will have to lose real money and feel that pain to the bones to get rid of any bad trading habits. Start with very small live account and get use to the live environment until you are numb from it. Once you are able to grow your account, It’s good to have occasional sizable losses here and there(during the learning process). It will be a good slap in the face reminding you to stay humble and keeps you on your toes.
You have 2 choice.
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Give up, go back to day job, live below your means, save up for retirement.
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work harder, review why you fail, join a forex contest. Continue to aim for the sky.
Yes, demo is the best way of learning! Basically, which traders invest their real money unless practicing enough demo account, they suffer in live for surely!
Yes, because trading in a contest is exactly like trading your own account… Not the best advice to give someone who wants to improve?
I’d suggest the opposite: avoid them.
Success in competitions comes only with very poor risk management, exactly what people having difficulties should typically be concentrating on improving.
I beg to differ. Initially i thought the same as you. Joining contest most time force us to take huge risk and may seem to corrupt our money management psychology. Now, i’m beginning to think otherwise. If we can handle the stress that comes with managing huge margin position. Base on personal experience, i think i’m beginning to see the light and see things differently. Sometimes we just need to be on the hard path to learn somethings valuable.