Losing your entire trading capital is a very common problem in trading. Never think you can learn the art of trading without losing any real money. Even the professional traders in Singapore have lost their trading capital during the learning stage.
But if you keep blowing up your trading account regularly, things will become hard. In fact, you should not trade the Forex market. Though regulated brokers like Saxo capital markets Singapore are offering leverage trading account, still you need to be concerned about the safety of your investment.
There are a few important things you need to do after blowing up the trading account. In this article, we are going to discuss the major steps which you must take to start fresh after blowing up the trading account.
1. Find The Faults
You need to find the faults in your trading strategy to start fresh. After you blow up the trading account, stop making a deposit within a few weeks. You need to take a small gap and find the mistakes associated with your trading strategy.
Things might be hard at the initial stage but once you find the faults in your trading method, you will understand why you are losing money at trading. To find the faults, you must analyze your past trade data.
Some of the retail traders don’t have a trading journal and they might say they can’t analyze their past trade data. But they have the opportunity to assess the trade history in the trading platform. By doing so they can easily find the mistakes which caused them to blow up their trading account.
2. Trade With A Low Leverage Account
You need to find a low leverage Forex trading account to start fresh. Trading the market with high leverage without having enough skills is a very big mistake. It’s normal to become emotional after losing a few trades.
Once traders become emotional they try to recover the loss by taking aggressive steps. Eventually, they blow up the trading account and blame the market.
But if you open a new account with low leverage, you won’t be trading the market with high risk. Even if you want to recover the losses with high risk, it will not be possible. So, reduce the leverage before you invest money in your trading account.
3. Learn To Trade The Higher Period
The majority of traders blow up the trading account since they start trading with the scalping method. But scalping is a very aggressive strategy and it’s very hard to make a consistent profit.
You need to learn the position trading method before you start trading the market again. The position trading method might not be comfortable for the aggressive traders but this is the only way to secure profit. Unless you trade the higher period, it will be really tough to make consistent profit from this market.
The higher period always gives accurate information to retail traders. It allows them to earn more money in any market condition. So, focus on the higher time frame as it can greatly improve your skills and make you a successful trader within a short period of time.
4. Develop A Strong Mindset
After blowing up your trading account, it’s normal to lose confidence. You need to develop a strong mindset or else you will lose money again. Losing or winning should have zero impact on your mentality. Get ready to learn the art of losing trades.
You have to find trades with high risk to reward ratio so that you can easily make big profits from this market. Forget the fact that the majority of the traders are losing money. You need to be such a person who believes in his own strategy. Develop your skills so that you don’t have to struggle with trading.