Blowing the entire trading account is one of the common practices of newbies. New Forex traders often jump into trading without studying its basics and then blow their entire account. They treat it as a game of money. After losing all of their money, they quit with a heavy heart and cry silently. Mostly newbies suffer loss in their first year of trading. Trading is a skill. Like all other skills, it takes time to learn and master it. In the process of learning, everyone makes mistakes.
Risk and excitement in blowing an entire trading account:
Everyone takes risk in Forex trading. Only few of them act like sensible traders and risk just 2% or3% on a single trading opportunity. But mostly get excited and risk their entire capital in a single trade. Obviously such irrational decision eventually results in blowing the entire trading account. Thus we can say that the lack of discipline and control on your emotions is the major reason of blowing the entire trading account.
The positive aspect about this blown account situation is that some very successful and expert Forex traders have also hit rock bottom. But even after facing such a disaster they did not give up. They did not allow negativity to affect them. Such traders took this blowing as a lesson and learned from it. They researched and studied the basic concepts of trading. Then they returned to Forex trading with new zeal and zest. The only difference is that they were fully prepared then. The correct use of suitable trading strategies and timely sound decision making helped them to soar high. This time they knew exactly what went wrong last time and what to avoid loss and become successful.
After Blowing :
Thus if you are mourning after blowing the entire trading account, then you must not lose hope. Just move on and return to demo trading. You just need to get back your confidence. Devote some time to actually understand how trading works. Try different trading strategies. Make your own SWOT (Strengths, Weakness, Opportunities and Threats) analysis of different trading strategies. You can survive and earn in Forex trading with a devoted determination. Remember if you have determination then All is not lost.