Monday, 14 May 2018

What To Do After Blowing Your Account?

Posted by Olga Gorinina at 10:02 Labels:

Experienced traders would say that most newbies end up losing it all within their first year of trading with a real account. And despite the fact I cannot say if that statement is accurate or not, chances of failure in Forex are high and especially for those who have no record.

Now let’s suppose you are totally new in Forex. You’ve spent three months working up your knowledge with a demo account and afterwards you’ve decided to give it a try for real.

All went perfectly fine for the first few weeks, but one day you simply woke up with zero dollars in your account. You checked your history and there it was… a massive loss overnight that left you out of the game. Too much imagination? Nope. Actually, it is a pretty common script.

Of course, the big question here is what to do next? You took a risk and it went wrong, that’s all you know so far. Failure is not an easy thing to swallow. In fact, it is an incredibly challenging thing to overpass. In order to give you a hand with that, we’ve put together three steps:

1. Face the truth

One very common way of treating failure is by rejecting everything that led to it in the first place. In this case, that would be Forex. You would feel that Forex is not for you, and even might start doubting about it all. Was it all a scam?... Ok, let’s take it slow from here. No, Forex was and it is not a scam. It was actually pretty fun and trustworthy until you blew your account, right?

Forex is about learning and failing is part of the learning process. The first step to overcome Forex failure is by admitting that you’ve made a mistake. Call it however you want: overexposure, poor risk management, a bad position…

2. Investigate what went wrong

Once you’ve admitted a mistake was done, then it’s time to investigate what actually led you to that mistake. Was it imprecise information? Was it your lack of experience? Was it you were too tired to double check something? What was it? If you are able to talk yourself out of it, then you’d be able to find a way to fix the mistake and move forward.

3. Start over (no shame on it)

Start right where you started: the demo account. Go back to it. Use your knowledge from the real account and try to make no mistakes like previous times. If you regain your confidence (and investment capital), feel free to go back and reopen a real account.

 https://www.fortfs.com

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