The Real Reason Why 80% of Traders Blow Up Their Accounts 💥

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Common Themes From Blown-Up Trading Accounts. Why do so many traders fail? How do I stop blowing up trading accounts? OK.
These are some of the common themes from blown-up trading accounts so you can avoid them.
How do people behave when they blow up trading accounts? What are the common reasons for a trader to blow up his account?
- Adding to losers
- Big losers/small winners
- Inability to recover drawdown
- Give up on rules quickly
- Trading equity curve
As a trader, what is your account blow up story? The name of this game is to stay in the game for as long as possible to achieve as much experience as you can.
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[@superfuture433]

I let my losers gain too big and I cut the winners early then started trading outside my rule planz

[@alexsipho8700]

"the name of the game in trading is to stay in the business for as long as possible until you get the experience to push you through...you need capital, you need mental capital" this is the best of most accurate quote I've heard especially given that only now I'm starting to be consistently profitable in my third year of trading. The learning curve in trading can be brutal but those who will make it in trading are those who will be able to beat the time by being in the business long enough until your phycology builds

[@krist6074]

After 7 years of being a consistent loser, I've finally become a consistent winner for the past 8 months. For me, it's just all been about set ups. Pick a strategy or pattern formation and stick to it. Put in a stop and profit target. With just a 1-1 risk/reward, you can make a huge amount of money if you only stick to the specific patterns that work. There's days I want to trade, but I can't find the pattern I am looking for. So even though I want to trade, I just can't as my strategy doesn't work on those days. Also, don't try too hard to make money, don't try to be right, just try to be correct in your strategy. Don't ignore what's going on, take a profit/loss, move on to find the next pattern. Thanks for sharing this video!!!

[@cassjackson]

Definitely comes down to risk management and no definite trading plan. Big losses and small winners mathematically does not work. I cut losses very quickly now and will re enter if the trade goes my way. Big stop losses or holding a trade based on what you “think” is going to happen was my main problem. Go by the charts and what’s happening now, not what you “think”.

[@chrislyons6541]

defo, risk management and take note of technicals, fundamentals not gut, as soon as you start listening to your gut you are gambling not trading. I set my loss to 30 pips religiously if you lose you move on. the trouble is people put their account balance on one trade, keep extending their S/L or have no S/L get the margin call and ignore it then the broker pulls the position and kills you. If I have 3 negative trades in a row I pull for the day. chasing the dream turns into nightmares normally, tomorrow will be a better day

[@Insolubilia78]

Position sizing and risk management go hand in hand for me. The moment I kept my position sizing consistent and stuck to my risk management rule everything changed! Thank you for the videos Mark. It's always good to get this kind of reminders. Cheers, Andreas

[@ibchang_]

Inconsistent and over leveraged position sizes trying to chase back the losses was my problem

[@Afridi-df3wm]

That's why I hate holding my trades. I love to be a scalper and day trader

[@abelzyderis]

It doesn't really matter how good you are, what matters is to not throw everything away with 1 trade. That's how I blew my accounts

[@AM2K2]

Very true about cutting losers - I hate the feeling of cutting a trade only to see it bounce...and you can get away with it 99 times out of a 100 but it will kill you eventually

[@Philosph0]

Adding to losers might work.. until you get the mother of all losses!

[@dean1398]

I appreciate this video so much because I can relate to it so much. I've blown up my account at least 5 times - that equity curve looks familiar - by doing every single thing mentioned and for all the reasons mentioned. And the worst part is, every time I've done it, I could see myself doing it and for some reason couldn't stop myself. I really hope some new and struggling traders out there pay close attention to this, not just as a warning, but also to know that we've all been there and there is a way out for most of us.

[@boy007w6]

That's me a year ago , I learned my lesson in a hard way😅. now I only risk less than 1% of my account

[@deantibbz5715]

You hit the nail on the head there Mark... The key difference between a success or failure is knowing when to cut your losses! Great content as always! Thanks!

[@RaineInKS]

I've blown up many small accounts. I've bounced from demo accounts to live accounts for a couple years now. Fell into the traps you mention in this video. Definitely helped to see a summarization of what takes place. And I can say from experience that the longer I trade the more I become self aware of what is going on and learn how to avoid my mistakes and do what works. I watched a video on YT where a trading coach said, "If you're not sticking to your plan that means your gambling." For some reason, that really clicked for me and it helped me to stick to my trading plan better. It's all a learning process for sure, but I've certainly enjoyed the ride so far.

[@AdamTrader84]

This is exactly my account, had an amazing 6 months, doubled my account... Nailed my technique. I made one small mistake of removing my stop loss on a trade and it's almost destroyed my account 😢

[@superhans85]

I just blew up my account today. It was a prop challenge and so I have lost a lot of money. The months prior I was demo trading and getting amazing results, enough to smash the targets of the prop firm. When I took the challenge I started off well enough, and then started to get into drawdown and just traded like an absolute fool. The pressure broke me into pieces. The more I traded like an idiot the more I lost and then the more I traded like an idiot and so on. Absolutely devastated but will use this as an expensive and important lesson. The markets have a way of humbling you. Totally agree about the markets "seeing you" stumbling and inviting you into traps. I Know it was an analogy but it resonates with me. Thank you for these video Mark

[@Nickspizza413]

Love the vids. I just blew up my 4th account. I had crazy FOMO because I missed an early trade so I was trying to make it up and ended up 2% down the day. My new rule is .5% per trade and if I lose the next trade is .25% and thats it. If I lose I'm done for the day.

[@yanafridabinaev]

Really love your videos!

[@iCodeForBananas]

I wish I had had seen this video much earlier on. I'm finding consistency but some of these traits I had to learn over time.

[@pTecnik]

First , I stopped adding positions(to losing trades). Instead, now I add a position right at that trade. That way I can take early profit on 1 position and let the other ride on(this profit can also cover your stop loss? ) Also one of the main reasons I blew my accounts was OVER TRADING! Instead I just aim to take 3 trades per week or even 2 trades per week With profit targets. You don’t need to trade everyday!! Stop it. Take less trades. The day you start taking less trades the better you will perform. Also if I made say 2000 on a trade. I see it as wage for 4 months. Cuz I can pay me self 500£ per month? See? Rather that seeing it as profit for the day lol cuz then greed comes in and you want to get back and make even more which can go either way. You only need a few trades to make money and pay yourself weekly/monthly. And also use a decent lot size enough to earn good money. Hope this helps.

[@cygnascent]

Your videos have helped me a lot. Thanks. I lose trades when I don't practice patience waiting for obvious winners and also trying to make good winners make even more when I should be just taking my profits.

[@ukspreadbetting]

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[@davidcharles4741]

Thanks Mark

[@Monkey.Trades.Futures]

well explaind sir

[@oluwaseunaderemivictor369]

The first time I blew up an account was due to over leverage and since I didn't know much then about money management,all I really want to do is to double my account, but market has a way setting traps for such individual. But not I'm more stable and conservative now, but still work everything on self discipline with proper strategy. Thanks a million for sharing.

[@Lena-vw6ye]

This is so true. When I first started trading, I would deviate from the principles and rules. It's easy to fomo into high RSI cause you see price going up, instead of waiting for it to come down. Or not looking at fundamental macroeconomic conditions. I would use TA, and just guess work but getting your emotions under control and making sure to stick to a plan and knowing when to cut your losses is so key. 🗝️

[@georgeotto9727]

You speak my mind 👌

[@fiveaugust9667]

Great thanks

[@eu8y]

overtrading & trading high impact news killed my account . but i learnt a lesson . i only take 1 trade a day max. or 3trades a week

[@yamch]

the most common is going on tilt which is an emotional response to the market...and it has to do with no max loss and excessive position sizing

[@davidhaylett1810]

Cutting losers is essential but folks also say that you have to give your trades ‘room to breathe’ . In reality this means room to go against your position and give you a big loss. We all, I hope, trade with a stop loss but there’s very little documentation anywhere on exactly how and when to cut your losers. So I’ve constructed my own method. Waiting for the trade to hit my stop loss is a disaster as is an exit indicator. So my advice is that you don’t give your trade room to breathe in the current time frame. If your are a swing trader on the daily chart and the trade goes the wrong way from the start, drop to the one hour chart and get out if that gives you an exit signal after one hour.

[@_N0_0ne]

Thank you

[@yeee3602]

That mental capital is hella underrated. Good stuff man

[@roscoeherald1414]

Blew up my most recent account by cutting winners too soon and letting paper cuts add up. I got mentally drained and discouraged with the mental beat down until I finally tilted and went all in on a 0DTE and trying to rebuild my entire process so that’s the last time.

[@panemanager]

Yeah I was going to say all I have to do to find blown up accounts is talk to every other millennial or younger person I meet nowadays especially after Bitcoin went belly up. As always, thank you for your insights Mark!

[@12StepTrading]

Moving and then removing my stop loss was the cause of blown accounts in the past. I was able to shake that bad habit when I did a 100 trades at 1 dollar challenge. I havent moved my stop since. I also learned the value of a daily and weekly loss limit. As a result I draw down but not too far.

[@sbasavanahally]

Hi Brandon. Can you please elaborate on this? How does this challenge work? I'd like to see if I can use it

[@smileypc44]

I've blown up three accounts and it's because of all of the above that you mentioned. I've been on a trading hiatus since blowing up the third account, and I'm learning as much as I can before going back to trading. Thank you for putting out these videos, they're very helpful truly.

[@empty-ed]

Hi mark . I’m a big fan of your channel and have watched many videos many times over . Any advice on me trading in sample sizes and not being emotionally attached to EVERY single trade ? Cheers

[@ukspreadbetting]

You need to reduce your trade sizes and have a plan in advance of placing a trade. Reducing your trade sizes will help to reduce pressure for every single trade to perform. Also check this kzbin.info/www/bejne/hnycn4Rtfs2moZI (and some of the video links in the description section of the video there)

[@MalibuJamie]

Pretty interesting how universal these psychological patterns are and how difficult it can be to distance ourselves away from the gravitational pulls of greed on one side of the trade and fear on the other. 👍

[@yamch]

It's because the brain has logical side and an emotional side and when things go wrong the emotional side takes over

[@lightkirsche]

I pray I will be able to afford membership to this club forever.

[@Nickc86]

I guess the hard part is when to call it a loser. When the stock stalls, when it loses 1%,5%, 10%

[@laurenth7187]

Finally, blowing up the account is extreme, but being able to lose money is a good sign, it means that you don't care so much any more, for money, it's a sign of recovery.

[@manojreddy123]

I’m good at finding the right set up, right sizing, right timing and the price, but my biggest problem is not taking the profits early. Many times, I’m up $500/$1K in a day, only to end my day with negative $1K for that day. Sometimes, I wish someone’s with me and push the sell button. lol.. I primarily trade SPY/SPX contracts!

[@alvarolow8768]

I have countless time experince blowing my account below are my summary 1 getting distract from others (parent,friend,cat.......) it's really annoying when I'm trading and someone beside me 2 no stop loss I would fart out loud rather than shit myself quietly with bubble in my pants 3 when you're sick don't trade a sick cat should lie on the bed not looking at the chart seriously will cause you made lot of wrong decision 4 takes times to accept big losses lossing trade is part of trading jorney if you can't accept it then get out of here you don't belongs to trading journey 5 don't revenge on a loss trade don't belive me? try it yourself

[@JohnQ85]

Most people know why, but they think they're hoping they will become the exception. This is why I think trading is like playing the lottery. Not because the market is the same as random numbers granting a prize, but because the players themselves make it that way with oversizing and going yolo.

[@jojohn2100]

I definitely oversized in margin after a big win, get tired of monitoring the market, a period of high stress , went on a work trip . Disaster continue day after day on the work trip. Even when I knew what should have done didnt execute. Too many things at once.

[@sbasavanahally]

Mark, for me, I have unfortunately blown up a couple of times including one recently. It is caused by big losers and the mental impact that causes. The big losers ALWAYS happen when I am not cognizant of risk. So I am thinking this is going to work for sure and I dont define the risk and then automatically I dont cut my loss. The other reason - I am in profit and market comes back against me and I dont have a plan for that and boom I am back to not cutting my losses again. So I am now realizing that while I have an edge, I dont have a clear definition of it with clear entry and stop signals. And a clear plan to exit. That is what I am working on now.

[@mohamedbenbrahim9152]

when mmy daily stop haited i try again to recover and i must end the day winner this my biggest proble when i blow up my funded accoount thanks

[@blazzz13]

Ironically I have never been liquidated despite some monumental cock ups. However I have experienced some significant drawdowns- my problem was an addiction to going short and just a phobia for going long. The way I cured it was managing the two trading strategies seperately. After several months I did a comparsion and my long trades outperformed my shorts significantly and that was a turning point for me. It also helped with my psych because it meant I wasn't bothered which direction the market went.

[@adriandlamini2696]

In my case my accounts blew because of too much greed, taking on big position sizes and cutting my winners early and letting my losers run with hope they would comeback to break even. Please do a video on how to manage Fear and Greed!

[@ukspreadbetting]

We've done a lot of material covering fear and greed: kzbin.infosearch?query=fear%20and%20greed

[@whoaitstiger]

@@ukspreadbetting As someone who's been watching since 2017 I'd say people are going to have a hard time thinking of a topic you haven't covered at this point. 😁

[@deltalordtrading]

It's a crap shoot when the data hits.. best to have a small position or no position.

[@jakubvalenta5403]

I am going to do the prop on-line challenge. I start on Tuesday.

[@DanFerrantelli]

I think a better question is why do market makers and the SEC allow the markets to move in such a volatile unpredictable manner?

[@srtrades]

Overtrading is a big one

[@alanoneill5417]

Great vid! So true all of it, its what happens to you when your on your trading journey, i blew topstep account evaluation before with 12$ left, hahaha got all the way to $8 988.60, misplaced my exit on last trade by a tick To finish, subsequently blew account over next few days, can laugh about it now wasn’t to impressed at the time

[@whoaitstiger]

Size is the main reason in my opinion. They get addicted to over-leveraging.

[@timmccarty8111]

True. It's like a drug sitting there for you to take. Hmmm. 1000 NVDA I'm down 50 cents let me average another 1000 maxing out my buying power. Oops, it just dropped a quick buck now I'm down $2500 and frozen.

[@whoaitstiger]

@@timmccarty8111 Yeah exactly. We've all been in that situation, it's horrible.

[@sukhmaidickoff]

I have never blown any accounts, but that is because I am well capitalized LOL 😁 However, my biggest sources for having bad streaks and losing money in trading were: 1) Revenge trading 2) Not being able to set the Stop/Loss levels right. Either I would set them wayyyy too tight or I would let losers run for too long

[@flippatheshippa]

I blew up by not properly understanding how much risk I was really taking. I would be stuffed to the gills with option contracts way too many for my account and the amount of leverage would swing my account in wild proportions. So for me it was just greed trying to catch a home run by taking as much risk as possible. But that doesn’t really work unless you get lucky so I stopped doing that because it’s just a easy way to lose all your money. I am still trading options but I definitely don’t do anymore of these heavy size gambling trades.

[@keithdavis9897]

I averaged down on a stock I do well with........a miner.........and then the Fed announced a rate increase at the same time I was working on a real estate deal. Then, I held the stock as I thought it would recover in a few days....it went down by 50%. I put it in my investment portfolio side as it will recover.......................but I will NEVER do that crap again in my trading account

[@timmccarty8111]

I'd have saved hundreds of thousands if I followed this. I didn't even though I knew better. Self sabotage is a real thing. You're a good guy and mean well but people should beware that trading can be a living hell. Thankfully my good income overcame my trading losses.

[@whoaitstiger]

I think the reason people blow up is overleveraging as I've already stated, but I think the reason they do it is that they want to make a big cushion of money to work with. They do this because they are afraid of getting stopped out multiple times. They're terrified. This is because they're not confident in their profitability and they constantly worry that they won't be able to make back their losses. They just don't have an edge that they're confident in.

[@GreatWhiteTrading]

Finally some good news for me 🤣, just watched a bunch of your vids. I have major flaws in my trading (only 8 wks in), but I'm solid at those, haven't added to 1 loser yet, On my current eval my average win is 2x my loss (15 days in, grinding to get +2500), Problem is I don't really know what I'm doing HAHAH...

[@danielvermeere7916]

60 dollars of passing and yes sir all i could think of was passing with a lick in the nuts . was a hard one after passing the first test and nearly the second

[@rougetrader6754]

I can just look at my previous accounts. Trading too big.

[@infiniteblock9267]

Hi Mark. Started trading high leverage(40x) crypto in May. I have used $100 accounts and blown up 6 of them :D it was due to basically all the reasons you said in the video. However this was a very valuable experience. I have done it all pretty much and now I’m trading the simulator for the past 3 weeks. I believe the next time I go live in about a months time I shall not do all these mistakes. You have helped a lot as well by summing it all up nicely in this video. Keep up the good work and have a nice day !!! ;)

[@flippatheshippa]

Thats a lot of leverage try turning that down a little bit until you gain more experience.

[@sachinskumawat]

This is my story How you know

[@1RAUL1]

I start in august by now lost 2k

[@cwwiss1]

Here's a typical example of the way I trade. I'm short the DOW with a tight stop...it gets stopped out. I wait an hour or so until I think it looks bearish and go short again with another tight stop...it gets stopped out. Another hour goes by perhaps 2 and it's clearly stalled so I take another short because i'm convinced at some point it's going to drop and put another tight stop of 40 points but scale up position ten fold...i'm prepared to lose £400. I walk away from the screen when my wife calls me to talk about something. When I come back it's winning BIG . It's wiped all my losses and I panic and close the position banking a £250 win. Only to see it go down much further and miss a much bigger win. A good trader may have taken half off probably but a top pro may have added ! It's THE difference between winners and losers in my opinion. If I am prepared to lose £400 I shouldn't be satisfied with a £250 win.

[@jackgalloway8314]

This guy!

[@nasmyster]

Adding to losers... I am still doing it haha

[@stikmannn]

Trading that equity curve 🤦

[@laurenth7187]

Because they don't have a robust strategy regarding the situation. So they get emotional.

[@laurenth7187]

And one overseen problem is the conflicting time frames... hum.. everything looks so bearish for the euro and yet it won't go down.

[@tonymacon9219]

I've had all of the above as far as mistakes made>

[@deedevs]

Too desperate + don’t have much of an edge. The psychological part is N/A if I don’t even have a strategy that i can trust. If you trust your strategy, you will not close tiny profits and will let them run

[@razalghoul3865]

70, 80, 90, 95% what is the actual fail rate

[@MrDekontee]

too late it took 22 months.

[@denvercolorado811]

Complete disregard of rules. Guessing the market. Trading no where near my signal.

[@timmccarty8111]

This is me.

[@mrich24]

👍

[@mirk0nni]

I'm the big losers/small winners guy

[@timmccarty8111]

Me too. The other day i made $500 on apple and it continued higher. Could have made $10,000. Next day lost $5000. Could not get out. Froze watching it decline.

[@kroduxion]

Traders fail because they're not professional gamblers

[@whoaitstiger]

So true. You really need to have a passion for gambling to enjoy this game. People try to elevate trading above gambling as if gambling is some sort of terrible stigma. But people with good risk management make good money in many games of chance and trading is just another one of these games.

[@kroduxion]

@@whoaitstiger yes I agree