Blowing up your trading account is a very common problemMore than 90% of retail traders have blown their trading account once in their lifeThose who have strong learning skills and control over their emotions have managed to create a unique trading strategy by which they are making consistent profitLearning to trade the market like the elite traders in Hong Kong is not an easy taskMost of the rookies fail to control their greed and emotions and blow up their accountAfter that, they become more aggressive and invest more money to recover their lossesAt the end of the day, they again blow up the trading account.
There are few things you can do as a currency trader after blowing up the trading account. If you can follow the tips of this article, you can expect to become a skilled trader in less than six monthsLet’s explore the tips.
Table of Contents
Take A Short Break
After blowing up your trading account, you need to take a short breakThe break will give you the time to think about your trading skillsIn most cases, those who start trading after blowing up the account, can’t control the aggressionThey consider the trend as their enemy and try to trade the reversalSoon they again lose a big amount of moneyBut if you take a short break, you will be able to think about the market condition and this will help you to reevaluate your trading systemIn most cases, the break can 1 week to 4 weeks long.
Find The Weakness
The professional traders at Saxo always revise their trading methodsIf you navigate to this website, you will find many tips written by the pro traders at SaxoUse those tips to find the weakness in your trading methodOnce you have filtered out the weakness in the trading strategy, you can find a demo account and develop your trading methodWithout revising your trading method, no one can become a successful trader in the Forex marketThough it will be tough to cope with the emotional stress it is the only way by which you can make a big profit in the long run.
Learn A New Trading Technique
If you are blowing up the trading account regularly, there is a high chance your trading system is a loserYou have to create a new trading method and try to make a profit in the real marketDuring the development of the new trading strategy, make sure you pay attention to the risk to reward ratioWithout trading the market with a positive risk to reward ratio, you can recover the lossThe rookies in Hong Kong always take a bigger loss and close the profitable trades too earlyFor this reason, they lose most of the time.
Once you have a valid trading method, you need to back-test the trading strategyWithout back-testing the trading strategy, you should not try to trade the real marketSkilled traders always give emphasize on demo trading since it helps them find the weakness in their trading method.
Create A Money Management Plan
Those who don’t want to blow up the trading account for the second time should create a money management planWith the help of a money management plan, the traders can find some great trades in the marketThe majority of retail traders are failing to make a profit since they don’t know the perfect way to manage the risk exposureAfter losing a few trades, they take a high risk to recover the lossEventually, they blow up the accountBut if you trade with managed risk, you are never going to lose entire capitalSo trade the market like the professionals and follow a risk management plan.