Bouncing back after losing a trading account

If you come across someone who claims they've never blown a trading account, they’ve either learned proper risk management from a pro early on or they’re just not being honest. Learning to trade is kinda like how babies learn to walk. It's a new skill that needs to be picked up with experience... A baby can't just magically walk; they have to take that first step, then the next, and keep going until they get it. Along the way, they stumble and fall, and sometimes they might get hurt, but that’s just part of it. You wouldn’t tell a baby to give up just because they keep falling, right? You cheer them on to stand up and keep at it until they can walk by themselves. That’s how we need to think about trading. We’re picking up skills that we didn’t learn growing up, so it’s gonna take some time. You might have to go through a few accounts before you finally find your rhythm.

Almost every trader has blown their account. If they have not, then they have come very close to it. It is an experience that teaches how to manage risk that books and watching other can't teach you. You learn and adapt to it from experience. I am a big believer that you learn better in the live environment than in demo because in demo trading , you can't blow your account and really feel it. It is only in a live trading that you really feel what it means to face risk and manage if after you have blown your account.

In that process, many don't survive. That's why the most successful and profitable traders are the ones that have never left and never quit. It's for us to decide if it's enough and if this isn't going to work for us. Those that have lost not just thousands, tens of thousands but even more, can go back on their feet if they know what they're doing.

So you need to crawl before walking. There are advice from traders to try out with small amount because this is where you take risk, by having risk you will greatly need to put all your focus on this job or lose you lose a capital. Although its a small capital, its something you need to risk else you will not learn to trade. Losing is unavoidable. They say learning from this loss is necessary for you to take note.

In my circles of traders, all of us have blown our trading accounts before due to several factors such as greed, indecisiveness, revenge trading after a loss, fear of missing out, no risk management strategy etc A number of them gave up trading along the way after blowing up the accounts, and you can't convince them to trade crypto again  For us who persisted, we know trading is never something is and there's always potential to make a loss no matter how go the odds might be. What matters is that when you lose a trade, how much of your margin have you lost?

No matter the level of risk management that you may have as a trader what is sure is that account blowing is a sure and frequent thing for most traders because liquidation is part of the experience and from such a tough experience one can figure out a lot of lessons. I learned to have a bankroll of emergency funds anytime I am trading derivatives this way I can properly service my liquidation price and keep drawing it to its lowest minimum, I learned all this from my experience of several time losses from trading.

If you got liquidated maybe you shouldn’t be trading at all. Why don’t you try something else this time? Hodling is way more profitable if you are a bad trader and since you already blow an account, it means you are a bad trader. It is very wise to avoid a game which you don’t have any chances of winning. If you don’t make trades you can’t lose. Since you will lose money when you make trades, then not making trades is a win for you in my book. Buy and hodl. Takes zero effort and victory is guaranteed.

Trading is a business where I’m constantly trying to achieve success but I don’t agree to leave anything even if repeatedly fails. No matter how many obstacles I’ll trade. Where success comes not only through theory but also in real experience. So I’m taking a constant experience. In terms of learning trading, success is not only available in theoretical knowledge but also in real experience. If you think you’ll learn everything in a day, that’s a misconception. In the way of learning trading, we all have to make some mistakes, to endure some damage. These are part of learning. For example, when a child learns to walk, he falls, but he doesn’t stop, stand up again and try. Similarly, trading is also a skill that doesn’t learn in a day, it requires time, diligence and hard work. And that you mentioned that trading ID lost is normal it happened to many. For this you will be protected from losing ID if you are in a security security.

All traders must have experienced it, right? This is part of your experience and all of ours... I have also been liquidated due to careless trading, but it was my own mentality that it was difficult to recover, so trading was not a top priority only occasionally after previously experiencing losses to zero. I don't want to get into a bigger depression due to trading, but I prefer to invest much safer and not think about market movements.

The best a trader can do is to be trading with small amount of money. An amount of money that he can afford to lose. This is because trading is very risky like gambling. For anyone that has been trading for 2 years and continue to lose, the person should quit trading. It is better to quit than it becomes too late.

Even if you are being taught risk management, I don’t think there is a way to avoid blowing account as a newbie. If a newbie tells you they haven’t blown account before, then the person might be lying. Trading is not what you can do without losing money, even professional traders do lose money when trading, just that they do make sure their profits is always more than their loss, So just imagine a newbie. When some people decide to start trading, their mindset is that they will never lose, they think immediately you start trading, you will be making money, and their won’t be loss, but things don’t work like that.

Risk management for "blowing an account" isn't really that shocking, you literally don't invest all of your money all at once. How hard it could be that you are right even just a few times in a dozen try that you lose money but not lose it all? Sure, you could be on a bad run and lose in a dozen trades and have nearly nothing left, but in that case the problem isn't a risk management issue, the risk is literally about not having any type of profit at all, and you need to be a better trader. Nobody in the world could handle being that bad, you need to get better. The part about risk management is just not putting all your money in a single trade, or just a few trades, that would make you a lot better and keep you going.

As a newbie in an industry, you a bound to make some mistakes. Even if you were groomed by the best hands, common mistakes will always happen. It might not get to the level of blowing an account but mistakes are part of the learning process. People who claim that they have not made mistakes because they were well taught might be lying or exhibiting pride. However, we cannot underestimate the importance of adequate training. This is because it will help to reduce the amount of losses.

Many do not recover, they find out about crypto, they see trading as a way to make very quick money, they get in and start trading, lose all of their money, call crypto a scam and walk away; rinse and repeat. You can sound motivational all you want, but the honest truth is that trading isn't for everyone, and for such people, the more they force it, the more they lose and the closer they are to debt. Hodling will always be a better choice IMO, hodling bitcoin BTW, and not shitcoins.

Actually, in my experience, at first try of trading, even though I know crypto and bitcoin, it wasn't enough to make a good profit in the long run. Without knowledge or skill in trading 100%, it would blow your account. I experienced this, which is why I end up doing it on a demo account, but I don't use a demo account on big exchanges like OKX because it is volatile, and you would notice some big spikes that don't exist in the live market. I use the paper money from TradingView. I do it daily, consistently analyzing the market and testing my entry. Experience is very important; actually, I've tested many strategies, and every strategy is almost the same; you just need to optimize it a bit and choose where you are comfortable and you feel makes you profit. The only important thing that I see to avoid blowing your trading account is by mastering the risk management, including how to calculate the lot size and stop-loss and stick with the 1% or 2% rule. I've been testing this for almost a month now. Even though you have a 50/50 chance of winning, if you have 1:2.5 risk, you are still making a profit in 50/50 winning and losing. That's why you need to keep looking at the chart for opportunity so that you know where it goes. Increasing your winning chance will make you more profitable. @OP, I could say mistakes and experience are one of the foundations you need to learn about the market and how it works. I blew my account before; it's part of my experience, but I always think that I can also do what others do, and all my mistakes are fuel to avoid these mistakes again in the future; that's the part of the learning process.

After ballooning your accounts it becomes a mental challenge to try and overcome the barrier that it will create in your head because you will become afraid and begin to overly second guess your decisions. You may want to become too careful, or even doubt your strategy the more. One balloon accounts may not be as the only result of a bad trading strategy but a bad of risk management. How do I mean? Your strategy of trading that has been profitable to you will not suddenly be bad if it fails just once. You can call your strategy bad about when it has repeatedly gotten you bad trading results. The trading market can totally go some ways that even people cannot predict and can lead to blown accounts, this is why Risk management is emphasized because that is only what can help you in times like this when the market go against your predictions even with all your indicators backing your decision. With risk management, you will loose, but it will be controlled.

See there is nothing demo account will teach you aside the way the exchange is been used, you can learn how open, close, set limits, Take profits and stop losses using demo accounts but aside this basics demo cannot teach you the emotions attached with trading. Aside having the basic knowledge of trading, psychology is the most important part of trading and this is only getting from live trading experience, the decision making process is different. Yes there are many traders that not experience blowing of account because they have learnt trading with proper risk management

This makes sense. That's why most new traders that are just starting are traders that don't stay for a long time, most of them are just good in the beginning, and most of the reason is because they keep losing trades during their early days and some of them are leading to bankruptcy. But other traders who manage to preserve their capital, even new traders are the one who are being successful in trading because they are still here and never quit.

If you will get the percentage between traders who have taught risk management at their early days of trading journey and those who are lying, around 80-90% of them are lying. On the remaining 10% who had a mentor or in this case, a professional trader on their side, around 80-90% of them at least experienced getting blown by their account by at least 1 time or even more. It's very, very rare to see traders not losing or at least being liquidated at their first try because most of them lose their money in their first try. Having a pro trader on your side that could help you doesn't mean that you will be the same as him already. You will experience losses along the way, but the only difference is that you will have a shorter route on how to become a successful trader compared to those who are self-learning (like me). As for how to recover after blowing your trading account, just make yourself calm (which is hard to do because I've been into it), do something that could divert your attention for a bit, and after you've collected things already, think on where did made that mistake, and don't do it again. Trust me, I've blown my account many times already, but I don't want to stop because I want to be a profitable trader soon.

Almost all traders have faced this kind of problem so I think it is better to learn from your own experience rather than focusing on blowing your trading account. Blowing your account can be not only the result of a wrong strategy or emotion but also the result of wrong risk management miscalculation of trade size or excessive leverage. It should be done with a thorough and slow attitude and caution. If you want to use a new strategy or technique backtest it first and test it on a demo account. This will allow you to verify the effectiveness of the strategy before trading for real.