How to stop blowing up your trading account

by Darwin on August 29, 2019

Securing your financial freedom in real life is a very challenging task. People work hard to get a decent job so that they can support their family. But do you think you will be able to lead your dream life based on monthly salary? The obvious answer is no. You have to start a business from scratch to ensure a steady flow of exponential income. But developing a business from scratch is a very challenging task. Even after having the initial investment, the young entrepreneurs fail to expand their business due to many external and internal factors. Does this mean we can’t become super-rich in life? Well, you need to learn to trade to become super-rich in life. Many people in Hong Kong have changed their lives just by becoming a currency trader.

Associated risk factors

You might think trading is one of the easiest profession and with a small investment you can easily make a huge profit from this market. But in reality, things are not as easy as it seems. According to a recent study, more than 95% of the retail traders are losing money. Most of the rookie traders blow up the trading account within a few months and make their financial condition much worse. Let’s learn some amazing technique which will help us to protect our trading capital.

Learn to trade first

Being a new participant in the Forex market it’s very obvious you will lose the trade. But this should not stop you from learning new things. If you keep on trading the market without learning new things are going to blow up the trading account. Learn to use the SaxoTraderPro trading platform like a pro trader so that you can find great trades with having any hassle. Create a simple technique to find high-quality trade setups in a higher time frame. Forget about the income for the first few months. Focus on your trading skills and you will see a dramatic improvement in your trading career.

Money management technique

Money management technique greatly varies from trader to trader. As a new trader, you have to understand the fact, trading is all about managing the losing trades. If you become frustrated with a few losing trades, you are not going to become a successful trader. Find high-risk reward trade setups so that you can easily cover the loss without having any trouble. Focus on long term goals and trade the market with proper discipline. Take short breaks regularly since it will keep you on the right track.

Developing your mentality

Without having a strong mindset, you are always going to lose money. The pro traders often consider psychological factors as an important part of the trading business. As a retail trader, you should learn about the professional trader’s lifestyle. Try to learn from their biography since it’s a great way to keep yourself motivated. Once you start to embrace the losing trades, you will never have to trade the market with stress. Take your time and try to execute your trade with valid logic. Forget about the quick gains since it always results in a catastrophic failure. Trade the market with strong confidence and you will become successful.

Trade with a low leverage account

One of the key reason for which the rookie traders are losing money is leverage. Leverage is more like a double edge sword. If you can manage it properly you can easily make a huge profit. But the new traders don’t have the skill to deal with such leverage in the dynamic market. It’s better to trade the market with 1:10 leverage since it will force you to trade with low risk. Once you gain experience and feel more confident, start taking advantage of the leveraged account. But never trade the market with high risk to earn more money.

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