What to do after blowing up the trading account

by Dwayne Buzzell Forex

Most of the time traders lose their investment in Forex. They do not want to lose but the market and the volatility confuses them and traders place trades that lose money. If you have lost your capital, you should read this article. You might be thinking that the career is finished and you will never be the trader that you have always wanted to be. This article will tell you how you can again start from the beginner if the investment is lost. Keep in mind that it will take some time but it will help you to recover the losses and give you a basis on your knowledge.

According to recent statistics, more than 90% of the traders are struggling with Forex trading profession. Though the success rate in Forex trading profession is very low yet the number active traders is rising at an exponential rate. Over the past years, many Singaporean traders have changed their life by working hard in the Forex market. They have devoted themselves to master the details of this market. If you make a small mistake, the chances are very high you will blow your trading account. So how do you deal with such issues in the Forex market? The idea is very simple. Trade the market with managed risk so that a few losing trades doesn’t cause you to become frustrated. Always remember, money management is the most important factor which has the potential to save the investment of a trader.

Trading is your alternative source of income

For the first few years, you should never consider trading as your primary source of income. Those who are new to this market should open a demo trading account with reputed broker Saxo since they offer the best possible trading environment. Try to learn to trade by using their virtual dollar and make sure you learn from your mistakes. This will eventually help you to save your investment from the wild swings of the market.

Look for a free option

As you have lost the investment, we suggest not to invest again in the market. You need to give yourself some time to realize what the wrongdoings are. Most of the flaws are done when you are trading live. In demo trading, we trade as we want and there are no emotional traumas. This makes the trade more accurate and inspires us to live trade. When we cannot control the emotions in live trading, our money gets lost. You should look for free options where you can open an account without investing with the online brokers and start your free demo trading. It will keep you in trading and you will get a chance to practice your strategy. Do not think you are finished, many traders have lost their investment, but success depends on how well they have come back from a disappointment. A free option is a good way to start your career.

Do not invest immediately

As you have lost the money, you will feel the need of investing again. The traders think that they have understood the industry and now they only need to invest more money to get back all the profits. This thinking is wrong and the volatility is playing with you. Do not trade immediately because you need to give yourself a break. It can be of weeks to months. In this time, you should read the market news, develop your relationship with the online community and try to give your career a new beginning. Your second invest should be smaller than the first invest to avoid losses.

Keep your patience in Forex

Do not lose your patience because you will lose money if you are not patient. It takes time to make a successful trade. So, do not get sad after losing capital. Think of it as an opportunity to start your career again. Only this time, you will have more experience and will be less likely to lose money.