What happens when you blow an account

Beginner Questions
1

Need to know

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2

You have 2 choices.

  1. Put in some more money and continue.
  2. Stop trading
3

i would like to know answer too. i would guess, broker specific, eitherā€¦
a) you have negative balance protection
b) they send u an invoice for the negative balance
i would also like to know about balance protectionā€¦ can u really max out on nfp and blow out big and no problem? i can buy at one broker, sell at another, and not pay out on the loss account?

4

You will lose your own money only and not risk any of the brokers funds (unless something like ā€˜Swissgateā€™ happens which is more of a black swan event).

5

It depends on many factors. If you blow your main account only due to bad money management then you will feel a lot about this loss. If you have only lost a stunt account which was meant to be used for high risk trading, then itā€™ll be less troublesome for you.

6

You refund your account and start all over again. Simple as that.

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7

You think your loss is some misunderstanding, deposit more to correct this ā€œmistakeā€ but fail again. After that you think itā€™d better to train demo first and then go live. I really advice traders to experience losses at first to understand its psychological side (frustration, greed, strong desire to win back). Had blown 3 deposits at Hotforex before managed to get over mess in MM and start to earn.

8

when you say you blow up an account, it just means you lost and went back to zero balance, nothing actually happens to the account it self, its still there, and if that happens dont worry, you are on of us 80% that had to blow an account one way or another as a newbie LOL

9

You stop wasting money and timeā€¦ then you learn how to trade and learn your true self. Time will tell if you are ready to refund or leave it alone.

[B]GLGT[/B] :35:

10

U either learned a lot or u go home running.

11

First, check the history and figure out how itā€™s blown.
Then open another account or keep funding to that account to keep trading but donā€™t repeat mistakes.

But I still burned 2 account in a row for same mistake, not putting SL :frowning:

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12

It was very unexpected for me , I was trading with high leverage forget that my risk is increasing . Suddenly my account blow up . I was surprised and disappointed , For some days I was not mentally prepared to trade again in forex market.

13

:eek:
it seems as great experience for you of course.
Its normal sir, I also had same experienced like you but i can correct my self and now I can withdraw about $200 from Liteforex broker. Its trueā€¦

14

How much leverage were you using? it is one thing that really scares me.

15

Hang on a second, were there any major news releases while you were trading?
Did you have a stop loss in place? :49:

Blown account? Yeah, weā€™ve all been there and done that. I remember my first account I blew my hard earned savings of $2000.00 in one hour by trading the 1 minute chart using 4.00 lots at 400:1 leverage. Thank f*ck those days are over.

Ever since then I treat Forex as a business by managing my risks. I only trade the 1 hour and 4 hour time frames now and I only risk 3-5% of my whole capital.
So just say you have $1000.00 in your account, you make sure that youā€™re only willing to risk $20-$50 per trade. So that means setting your stop loss at a maximum of $20-50 per trade if you have $1000.00 of capital in your account.

So dust your shoulders off, deposit some rupees and watch out for them non farm payrolls!

Happy trading.

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16

You either can opt out of trading altogether or learn what you did wrong by analyzing your tradesā€¦

17

Starting all over because loss is part of the trade. I will try to learn more and plan profitable strategy until i get it right with more determination.

18

Not set stop loss is very dangerous for survival account , from that experience , any confident my analyze i am not forget to place stop loss at every transaction , but again sometimes our mental are obstacles to do discipline in place of stop loss

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19

You take some time to calm down and then start looking for ways to invest money again. Or you give up altogether. It really depends on the person.

20

In my opinion two things separate the Professional from the herd. Firstly, being able to override your instincts and take the ā€œhardā€ trades ā€“ not trying to pick the top or bottom, waiting until you get a high probability setup, following your trading rules even when it feels wrong.

Secondly, being consistent ā€“ day after day, month after month ā€“ making small gains every day rather than big wins followed by big losses. Approaching trading like a business ā€“ methodical, logical, dedicated.