Blowing up your trading account is common among new traders.
The most common problem?
Lack of a recovery strategy.
These 6 steps will help you to recover and get back on track in less than 30 days🧵:
Acknowledge the Loss
Recognize the impact of the blown account.
- Reflect on what went wrong
- Accept responsibility without self-blame
- Use it as a learning opportunity
Start Small
Begin trading with a smaller account size.
- Use a demo account initially
- Transition to micro or mini lots
- Focus on consistency over profits
Emphasize Risk Management
Prioritize preserving your capital.
- Never risk more than 1-2% per trade
- Use stop-loss orders religiously
- Diversify your trades to spread risk
Seek Education and Mentorship
Learn from experienced traders & educational resources.
- Find a trustworthy mentor
- Take a proven course
- Read trading books and articles
Manage Your Emotions
Control your emotional responses to trading outcomes.
- Avoid revenge trading after losses
- Celebrate small wins to build confidence
- Practice mindfulness & stress management techniques
Stay Disciplined
Adhere strictly to your new trading plan and rules.
- Resist the urge to deviate during drawdowns
- Trust your analysis and strategies
- Stay patient and avoid impulsive 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”.
