Is blowing accounts a necessary learning curve in ones trading journey?
Success is not possible if trading psychology is not managed properly. If you want to make a consistent profit, you must control your emotions.
Not all traders with blowed accounts managed to be successfull at the end, but all successful traders got one or several blown accounts
It is best to start with a demo account, create a trading plan after you succeed to earn on a regular basis, then start trading with a real account in small amounts and from there continue …
Many skills are required for trading successfully in the financial markets. They include the abilities to evaluate a company’s fundamentals and to determine the direction of a stock’s trend. But neither of these technical skills is as important as the trader’s mindset. Containing emotion, thinking quickly, and exercising discipline are components of what we might call trading psychology. There are two main emotions to understand and keep under control: fear and greed.
Unfortunately, I think it might be as there’s a learning curve. People tend to learn better from their mistakes.
If you’re interested in trading psychology, I recommend the Disciplined Trader and Trading in the Zone by Mark Douglas. He makes the case that most traders are their own worst enemy if they let greed or fear take control.
You’ll find book reviews here:
Thank you for sharing this. I’ll definitely give them a read
Of course, it is. Without making losses, you won’t get to learn what wrong you are doing and how you can make the most of the market. I agree that losses can dishearten you but that doesn’t mean they should stop you from trading.
Correct, we should learn to accept that some losses will occur. We can only try to minimise them but not eliminate them completely.
It is not necessary but it sure gives you a sense of responsibility. Good luck to you.