Do you blow out accounts in one day after days, weeks or even months of success? This is a very common problem for the new trader.
I know, because I have been there, and certainly done that. The good news is, that it is fixable, if you are daring to get to the actual ROOT cause of the issue.
The reality of this situation is, that it really only comes down to only 2 possible reasons this is happening:
- There is a lack of discipline in you as the operator – often this is a mindset issue (more later) –
- There is no strategy (or you’re not following it) and you got lucky – it isn’t that YOU MADE THE MONEY, it’s that it was borrowed and with a long enough timeline it was destined to go back to the market
Now the second one is very easy to fix, but ONLY after you have addressed the root cause for your lack of discipline in trading.
Lack of discipline is often blamed as the cause of losing money in the market. However, lack of discipline is actually THE SYMPTOM. The actual cause is deeper than that.
Often times, the “lack of discipline” is a physical manifestation of one of these deeper rooted issues:
- Conflicting wealth values / money mindset
- Lack mindset – self worth
- Fear of of losing, risk avoidance
- Fear of failing
- Fear of succeeding
- Doing it for wrong reasons
The hard part about either of these, is having to admit this to yourself and accepting the responsibility to change it.
In this episode I share some key questions you can ask yourself to uncover what is the real cause that’s causing you to blowout your account after stringing together some success.
I really hope you enjoy listening to this episode as much as I did recording it.
As traders we are always working on ourselves, and this is a great opportunity to take your development to the next level.
As always, manage that risk and trade like a TRADEPRO.
Resources
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