5 Practical Tips to Never Blowing Up your Trading Account

Tired of blowing up your trading accounts? Here are 5 essential tips to safeguard your account and never blow it up again.

1/ Embrace Risk Management.

Safety first.

  • Risk only a small % of your account per trade
  • Use stop losses to limit losses
  • Understand and manage leverage

2/ Use Position Sizing.

Control the size, control the risk.

  • Adjust your trade/lot size based on your account balance
  • Don’t increase your trade size out of greed in order to make more money
  • Proper position sizing is the key to survival in trading

3/ Follow a Trading Plan.

Trade by design, not chance.

  • Develop a well-structured trading strategy
  • Stick to your plan, avoid impulsive trades
  • Regularly review and adjust your plan

4/ Diversify Your Trades.

Don’t put all eggs in one basket.

  • Spread risk across different instruments
  • Avoid overexposure to a single asset
  • Diversification reduces overall risk

5/ Trade Within Your Means.

Only risk what you can afford.

  • Avoid overcommitting your financial resources
  • Trade with a comfortable amount of capital
  • Financial stress undermines trading decisions

To learn more about How you can Start Trading for a living, sign up below for my Free Training on the “7-Steps to Financial Freedom through Trading”.

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