As a trader, what is your account blow up story?
TRADINGFEATURED
"In my opinion, trading is not about gambling on that one big move that is going to change your life. It’s about taking small calculated risks where rewards are tilted in our favor"
I have never blown up the account and always stopped my trading activities once the account had a drawdown of 30%.
The number one mistake I see beginner traders making is - Taking too much risk with these huge gambles and insane profit targets that will never be hit.
The cause of this is they normally want to get rich quickly but the truth is, this mindset won't make you a successful trader.
It will probably make you quit.
In my opinion, trading is not about gambling on that one big move that is going to change your life. It’s about taking small calculated risks where rewards are tilted in our favor.
Low risk + High reward = Profit
The key is to become a sniper in the markets and target high-probability trades.
To do this:
Look for multiple confirmations, this is called confluence, think of it as all roads that lead to profit.
Identify alignment in trades in the higher and lower time frames to determine your daily bias.
Trade with the underlying direction of the market. I try to look for areas to hop in a trade with the momentum of the trend.
Always make sure that your trade aligns with your risk tolerance and never trade for the sake of trading. Have the patience to wait for your setup to develop.
Shortening the time horizon in price moves, trading is about capitalizing on a portion of a move and not the move in its entirety. To target a 1:2 risk reward use a predetermined stop loss and target before entering. My preference is targeting price moves of 1–5%.
Credit: Quora