The majority of traders who lose money and leave the markets without learning the lessons. The market was trying to teach them some important lessons. There were most likely four Nightmares of the failed trader who go through the trader’s account, leaving behind lost battles, pestilence, famine, and destruction.
What are the causes a trader’s account to destruction?
Is it a lack of risk management and a trading strategy?
Traders often learn the hard way, but it is possible to start using the right principles and methods right away.
You can avoid being Trampled by the Nightmares Of The Failed Trader by Following Steps:
1. Never overlook the dangers:
Even the best traders in the world only have a 50% long-term win rate and frequently lose ten times in a row. If you want to succeed in trading, position size and stop losses should be set so that your risk per trade is between 1/2 percent and 2% of your total trading capital. If you risk more of your trading capital per trade than a string of losses wipes out your entire account.
2. Always have a trading trading:
If you don’t have a strategy, you’re a gambler, not a trader. Trading with the odds stacked against you will starve your account of profits. You can become the casino with a trading strategy. You’ll have a leg up on the competition.
3. Follow what’s going on:
Unless you’re a true psychic who can foresee the future, you’ll have to rely on what’s going on in the chart. Facts are trends, support, resistance, moving averages, and prices. Your account will become sick and cough up profits once the disease of prediction has infected you.
4. Don’t let your ego trade:
Your ego only wants to be right, brag, and look good in front of your friends and fellow traders, so don’t let it trade. The ego is a terrible trader, and trading according to your ego’s demands will destroy your account.
Follow Above Advices If You want to Avoid Nightmares Of The Failed Trader.
Also Read
A Great Trading Plan To Be A Great Trader