3 Ways to Avoid Having Your Forex Account Wiped Out!

By Joshua Geralds

Beware as 95% of new traders who enter into the world of forex trading have their accounts wiped out within 6 to 9 months of love trading. Don't let that happen to you. Here are 3 ways to avoid having your Forex account wiped out.

(1) Money management

First off you got to have a money management plan all thought up and implemented. Unfortunately a lot of traders do not bother with a proper money management plan. Instead they choose to focus on the technical aspects of forex trading. Money management is one of the most important elements of trading well. In fact if you use a coin toss to decide how and when to enter and exit the market you have a 50% chance of success. If you couple your coin toss with good money management rules you will actually make more money than the trader who concentrates on a trading plan but ignores money management. The reason is simple, when you have a money management plan, you will protect your account and you will keep your account safe in all market conditions. That way you can focus on making pips!

(2) Discipline and patience

Second is discipline and patience. I must admit that discipline and patience are traits that are difficult to build. Without discipline and patience you can expect to see your account go the way of the dodo very soon. A good way to build these 2 important traits is by keeping a trading journal. Do not just write your entry and exit positions in your journal! Include everything you have done before, during and after the trade. This has 2 advantages, the first is it will give you time to reflect on your trade and when the next trade comes along, hopefully you would have learnt a lesson. Secondly it builds discipline and patience. Just imagine writing your journal each and every time you trade, it will take a lot of mental energy and will power to do that and in that manner you build your character.

(3) Psychology of trading

Third is what I consider part of the holy grail of trading. This is your psychology of trading. Your psychology is important because it gives to you the emotional detachment that a good trader requires. It will hold you back when you get a greed attack and try to trade more than what your money management rules have set. What separates a rookie trader and a professional trader is their psychology towards trading. The rookie trader cannot control the emotions and thus has an account wiped out, where as the profession can. This leads to the professional trader making money hand over fist.

Try not to be in the 95% range of traders that lose their account. Pay attention to these 3 ways to avoid having your Forex account wiped out!

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only!