Friday, 1 April 2016

Crashed my Account again... I QUIT!

April Fool's.  My account is just fine.  I just thought I'd get your attention.

It's been a while since I crashed an account.

Here are some tips to keep your stress levels down:

  • DEMO:  Don't trade with real money unless you have successfully traded your strategy in demo for some time
  • LOT SIZE:  I know you are going to trade with real money anyway, so at least trade with micro lots.  0.01
  • Create multiple accounts with your broker
    • Your main account should have the amount you are comfortable losing and walking away from
    • Your other accounts are your backup accounts in case shit hits the fan. And it will.
  • PROGRESSIVE LOTS:  After each successful trade, double your lot size.  0.01 becomes 0.02, then 0.04, 0.08 and so on.  Sure it's small but you are better of making small profits than taking huge losses.
  • LOT SIZE: Find a lot size that you are comfortable with.  Starting and Ending.  Perhaps after SEVERAL MONTHS of consistent gains, 0.1 is a good start and 1.0 is a good max lot size.
If you are consistently losing then lower your lot size, change your strategy, go back to demo, or take a break.  Why?  Because at this point you are GAMBLING and not trading!