The 5 Main Reasons that Traders Blow Up 😬

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The 5 Main Reasons that People Blowup OK.

1) Trade too much size - this was my reason for decimating my first account when I started many years ago. We all want to make as much money as possible, however what we tend to forget is that we'll also lose bigger amounts if we trade in bigger size.
2) Overtrade - Don't trade just for the sake of trading.
3) Revenge Trading - This is broad and covers a lot of things. The market doesn't care what you're doing or whether you've lost money...
4) Add to a loser - adding to a loser is about adding it on a whim without any plan.
5) Gamble on news - this is a bit like revenge trading but this involves gambling on news.

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