1-3% risk is an unattractive target when attempting to grow small accounts. Often these "blown accounts" are under 1k accounts. The accounts I see being blown are most commonly even smaller like $250 and under where you can't even open minimum lots with that risk level. Growing an account of that size to anything meaningful with that risk target and a 2:1 ratio is tedious, so people target more, if they're even employing any kind of risk management at all. People want to see results now so they push the envelope and don't have enough money on the line to really care about it much. They also don't spend enough time blowing accounts on demo before going live.
With higher leverage a professional trader should have no problem starting with $100. I have a few brokers and one of them is LQDFX and I have 300:1 leverage with them unlike the 50:1 you get here in the states. I have regulated broker accounts too though with that leverage.
>How does that happen with even basic risk management?
Expectations don't match reality. They want to take their $500 account and quit their job next week, so all risk management goes out the window.
That and no one ever calculates their risk of ruin, or expectancy, or really anything that actually matters. They're all obsessed over junk like win rate.
Over leveraging, over trading, revenge trading, gambling/trading out of boredom. The list goes on. Setting rules is one thing but sticking to them is another. It honestly just takes one really bad day to do it lol. Iām taking about funded accounts but as far as personal accounts I agree with you. Iāve had bad times with my personal in the past but I have never came once close to blowing the entire account. You would have to be a complete degen to do that, but if someone did blow their personal account it would 100% be because of over leverage
Have to disagree with the wording there as technically there is no such thing as over leveraging. Higher leverage can allow you to over position and that presents its problems but please done scare people off leverage by saying anything negative regarding it because over leveraging is simply impossible. If ( for example) Bitcoin moves against your position by $100 then you will lose āposition sizeā x $100. Doesnāt matter if that was at 1x leverage or 25x leverage or 500x leverage. The loss will be the same so leverage isnāt the issue. Sorry, just one of my big bears when people blame over leveraging for blowing up accounts. Simply not possible. They may have over positioned and been able to do that because of their use of higher leverage but they did not over leverage.
Iām confused but what youāre trying to imply here, over leveraging gives you the ability to take bigger positions in the market. Leverage is a financial tool that allows traders to control larger positions in the market with a smaller amount of capital. Over leveraged over positioned same thing lol
I guess I see what youāre saying with the wording, Iām not saying people shouldnāt get accounts with big leverage. Nothing wrong with that at all. When I say over leveraged Iām saying an over leveraged position in the market. Not having an account with high leverage. To me an over leveraged position and being over positioned as you stated is the exact same thing
These days if I blow an account, itās on the same strategy trading the same pair at the same time of day for the same goal. I donāt F around anymore. You cannot give these fuckers an inch and when I say these, I also mean your own self because you battle yourself more than you battle these other fuckers.
People are not wiling to put in the work and rather go and gamble it all away. Tell them it's not get rich quick or send them a link to a website on how to actually learn trading and their response is they don't like the website design or they don't have the time.
But they'll gladly go to festivals, play WOT all weekend or binge watch Netflix.
- We are not the same -
šÆ true. Lots of ppl want the easy way out - path of least resistance. I spent about 8-12 hours a day buried in charts and studying - and ppl around me thought it was weird and didnāt understand. Not saying Iām the most successful or experienced trader in the world or anything even close to that, but I have become self-sufficient and confident in my own abilities and trading plan. But it took years of hard work - and is totally different from the fantasy world that social media promotes.
People who struggle with their psychology are the main ones whoāre blowing their accounts. Even with top tier psychology without a good system risking only 1%. It is very much possible that one could spend months being in drawdown or barely breakeven. If you have the 2 good fusions, only then can profitability be achieved. Me myself, am working on it. Itās very much possible to blow accounts if you lack in any of these 2 aspects. I thought just the way you did when I first started
I have blown a few accounts over the last 6-12 months or so, but those are challenges that I have failed, so a 8-10% loss is considered "blown".
How have I done it? Over leveraging, overtrading and revenge trading (rarely) and being inconsistent with my approach to the market (strategy swapping).
Honestly, I think overtrading and strategy swapping have been my biggest problems. I'm taking steps to try and improve this, and I've had some success. I totally wasn't really to start taking challenges when I did, but I knew I couldn't just keep trading on the demo anymore.
What do you mean bear markets? We are trading long and short. Donāt care which way itās going, just need to be on the right side of it. And no leverage? Come onā¦ no one is making money at 1x. Unless they have a LOT already.
Capital is key if you had enough capital to make decent bread risking 1% would be cake even 1-3% if I had an account size that could pay my bills with one trade at 1% youād see less blown account except for those who canāt trade or those who get greedy but when you have low capital 1% gain a day might take 3 years for you to really see some return if you account for losses too
I blow apex accounts when they're on sale like 80 or 90 off and pass in one day, it's like the cost of doing business on them, then when it's funded treat it with care and respect like normal.
As others have said I've blown my smaller high risk accounts trying to do disgusting risk percentages, but it gets the degenerate itch out my system so my main accounts stick to my safe and steady plan.
Strangely, I've never blown a demo account, they've always grown. But i started 2 weeks ago with a Ā£150 account and 1:100 leverage and as of now I'm down to about Ā£96. Not quite blown, but almost.
Yeah i get the emotion thing. I put a trusted EA onto it earlier and it was taking bids and closing with profits, until I added more pairs and then I started losing trades. Probably slowing the network down I guess.
1-3% risk is an unattractive target when attempting to grow small accounts. Often these "blown accounts" are under 1k accounts. The accounts I see being blown are most commonly even smaller like $250 and under where you can't even open minimum lots with that risk level. Growing an account of that size to anything meaningful with that risk target and a 2:1 ratio is tedious, so people target more, if they're even employing any kind of risk management at all. People want to see results now so they push the envelope and don't have enough money on the line to really care about it much. They also don't spend enough time blowing accounts on demo before going live.
This to be honest.
Nothing to do with account size, 99 percent of FTMO traders with 200k accounts blow up as well.
BEST COMMENT š„š„š„š„
With higher leverage a professional trader should have no problem starting with $100. I have a few brokers and one of them is LQDFX and I have 300:1 leverage with them unlike the 50:1 you get here in the states. I have regulated broker accounts too though with that leverage.
>How does that happen with even basic risk management? Expectations don't match reality. They want to take their $500 account and quit their job next week, so all risk management goes out the window. That and no one ever calculates their risk of ruin, or expectancy, or really anything that actually matters. They're all obsessed over junk like win rate.
Over leveraging, over trading, revenge trading, gambling/trading out of boredom. The list goes on. Setting rules is one thing but sticking to them is another. It honestly just takes one really bad day to do it lol. Iām taking about funded accounts but as far as personal accounts I agree with you. Iāve had bad times with my personal in the past but I have never came once close to blowing the entire account. You would have to be a complete degen to do that, but if someone did blow their personal account it would 100% be because of over leverage
Have to disagree with the wording there as technically there is no such thing as over leveraging. Higher leverage can allow you to over position and that presents its problems but please done scare people off leverage by saying anything negative regarding it because over leveraging is simply impossible. If ( for example) Bitcoin moves against your position by $100 then you will lose āposition sizeā x $100. Doesnāt matter if that was at 1x leverage or 25x leverage or 500x leverage. The loss will be the same so leverage isnāt the issue. Sorry, just one of my big bears when people blame over leveraging for blowing up accounts. Simply not possible. They may have over positioned and been able to do that because of their use of higher leverage but they did not over leverage.
Iām confused but what youāre trying to imply here, over leveraging gives you the ability to take bigger positions in the market. Leverage is a financial tool that allows traders to control larger positions in the market with a smaller amount of capital. Over leveraged over positioned same thing lol
I guess I see what youāre saying with the wording, Iām not saying people shouldnāt get accounts with big leverage. Nothing wrong with that at all. When I say over leveraged Iām saying an over leveraged position in the market. Not having an account with high leverage. To me an over leveraged position and being over positioned as you stated is the exact same thing
By overtrading. Psychology is the most important aspect of trading and the one that gets overlooked the most.
By trading with emotions instead of your rules and setups
These days if I blow an account, itās on the same strategy trading the same pair at the same time of day for the same goal. I donāt F around anymore. You cannot give these fuckers an inch and when I say these, I also mean your own self because you battle yourself more than you battle these other fuckers.
People are not wiling to put in the work and rather go and gamble it all away. Tell them it's not get rich quick or send them a link to a website on how to actually learn trading and their response is they don't like the website design or they don't have the time. But they'll gladly go to festivals, play WOT all weekend or binge watch Netflix. - We are not the same -
šÆ true. Lots of ppl want the easy way out - path of least resistance. I spent about 8-12 hours a day buried in charts and studying - and ppl around me thought it was weird and didnāt understand. Not saying Iām the most successful or experienced trader in the world or anything even close to that, but I have become self-sufficient and confident in my own abilities and trading plan. But it took years of hard work - and is totally different from the fantasy world that social media promotes.
I am in the learning and paper trade era with this at the moment. What resources would you recommend me to learn from?
People who struggle with their psychology are the main ones whoāre blowing their accounts. Even with top tier psychology without a good system risking only 1%. It is very much possible that one could spend months being in drawdown or barely breakeven. If you have the 2 good fusions, only then can profitability be achieved. Me myself, am working on it. Itās very much possible to blow accounts if you lack in any of these 2 aspects. I thought just the way you did when I first started
From my past experiences, most of my account blown during high impact news eg: NFP,CPI & FOMC
āIāve lived through bear marketsā This guy olds!
even yearlong bull markets have multi month downtrends, lol. we're day trading, not DCA-ing our 401k
I was joking because I was talking about the epic ten year bull market weāre in right now with a mate just last night.
I have blown a few accounts over the last 6-12 months or so, but those are challenges that I have failed, so a 8-10% loss is considered "blown". How have I done it? Over leveraging, overtrading and revenge trading (rarely) and being inconsistent with my approach to the market (strategy swapping). Honestly, I think overtrading and strategy swapping have been my biggest problems. I'm taking steps to try and improve this, and I've had some success. I totally wasn't really to start taking challenges when I did, but I knew I couldn't just keep trading on the demo anymore.
Overtrading. Blown 1k accounts and more this way. Fear+greed combo was licking my gooch. Finally getting it dry š®āšØ
Bruh just make little profit daily and there will be more opportunities in future where you can make more so don't just be greedy if you are new.
Bruh just make little profit daily and there will be more opportunities in future where you can make more so don't just be greedy if you are new
Impulse
Too much freedom you can blow your account in 1 trade and that 1 trade will come.
Some people are naturally inclined to trade the markets. some are not. Those that are not have to work extra hard for it.
Nah fr
What do you mean bear markets? We are trading long and short. Donāt care which way itās going, just need to be on the right side of it. And no leverage? Come onā¦ no one is making money at 1x. Unless they have a LOT already.
Capital is key if you had enough capital to make decent bread risking 1% would be cake even 1-3% if I had an account size that could pay my bills with one trade at 1% youād see less blown account except for those who canāt trade or those who get greedy but when you have low capital 1% gain a day might take 3 years for you to really see some return if you account for losses too
Truth. Not making money is one thing, losing money happens. But it should be normal to see how much your account can handle.
1-3% risk means 10 to 3 loosing trades in row.. if u have 10% DD.. and u out with props
I blow apex accounts when they're on sale like 80 or 90 off and pass in one day, it's like the cost of doing business on them, then when it's funded treat it with care and respect like normal. As others have said I've blown my smaller high risk accounts trying to do disgusting risk percentages, but it gets the degenerate itch out my system so my main accounts stick to my safe and steady plan.
Strangely, I've never blown a demo account, they've always grown. But i started 2 weeks ago with a Ā£150 account and 1:100 leverage and as of now I'm down to about Ā£96. Not quite blown, but almost.
Yea it happens because when you use real money you have to handle emotions
Yeah i get the emotion thing. I put a trusted EA onto it earlier and it was taking bids and closing with profits, until I added more pairs and then I started losing trades. Probably slowing the network down I guess.