WHY AMATEUR TRADERS BLOW THEIR FOREX TRADING ACCOUNTS

Hello steemians, I'm DrimTheTrader, a forex trader from Nigeria. Today I'd like to share with you all some of the reasons why newbies in the forex space blow their trading accounts.

It’s an almost-every-time occurrence for newbies in the world of trading to blow their first trading account. I have a friend who blew the account his just funded within the first two(2) hours of trading. I too, blew my first account, although it was too much longer than his. In this article, I’m going to expose you to some of the reasons why this happens every time.

First, most newbies lack basic knowledge. They get excited when they hear that Forex can pay up to $100 and above in a day, so they jump on a broker, fund, and just blow their account.
Dear reader(trader), before you fund your forex account to trade, make sure you’ve read enough about forex. There are eBooks, Youtube videos, and other successful traders to get knowledge from, before venturing into the business of trading.

Next, they lack enough experience. Even after reading some eBooks and Youtube videos, you could still blow your account if you haven’t practiced enough using a demo account. When most new traders trade on a demo account and make little profit, they assume that they’re good enough, and so jump into a live account. Trust me; they don’t always enjoy the outcome.
When you’re trading with a demo account, give yourself a target of converting $100 to $500 or even $1000 before you trade live. Don’t ever trade live when you’ve not met your target yet.

Finally, the most important thing newbies lack is DISCIPLINE: When most newbies open a chart, they don’t spend time doing quality analysis. They just see price moving in a particular direction and place a trade on instinct. Now, this may or may not work out well. In fact, that method of trading is no different from gambling.
They don’t have the patience to wait for a good signal to come up before entering a trade. They make silly mistakes like not placing “take profit” and “stop loss” levels, trading too many times in 1 day, and being greedy when they are on a winning trade. All these mistakes contribute to why amateur traders blow their trading accounts.

Hope you enjoyed reading this article. Thanks for reading.