Number 1 Factor that Renders a Trader’s Account Zero

Trading is a type of businesses which involves the highest risk. New traders often fail before they find the real key to be a professional. The only way to success here is to limit everything you do with your account. The more you trade, the higher the chance of your losses or zero account. The number 1 factor that causes any traders to fail and lose all the money in the account is Greed.

There are two types of emotion while you are trading; fear and greed. Without knowing how to curb these feelings, your trading is still at risk. Greed often causes you to stick to the screen and trade non-stop. When you lose one trade, your greed and anger will grow bigger. This makes you to open another trade. This feeling will make you enter the market despite not having the right conditions. If you can’t do anything for this problem, you may set relaxed time before opening another trade.

Moreover, Greed makes you want more when you win. You seem not clear when to stop trading. So to solve this problem, you need to set daily loss and win target each day. Binary Options is at higher risk and the odds are favorable for the brokers. I strongly recommend newbies not to trade binary options if you just start your trading career. Binary options set unchanged expiration time for your trade. This is the worst problem for traders. Forex is the most simple and easiest trading. You leave your trades to open for years.

Greed is the root of performance anxiety. Greed is the only problem that every person who wants to get rich quick suffers. Have you ever felt that you have won but you still want to open your laptop lid to find new trade opportunities? This is the performance anxiety. I have this problem too when I started to trade binary options. I suggest the solution for this. You can take only 1 or 2 trades per day and stop for the rest of the day.

If you have problems from your greed, you need to change your lifestyle a little. Make your trading day as a strict habit. Limit the time you trade. You may use large capital. The pitfall of using very small capital also causes greed. You need to ask yourself, what is the enough amount that you earn and are happy with per day. This is a good idea. Let’s say you have 10000 in your Forex account. With this, you may earn 500$ per day but some days you lose. It is still okay as your wins exceed the losses. The day you get 500$ will make you happy and stop trading with a peace of mind.

In short, to be successful in trading, you need to learn how to control your greed. Fear is also the other emotion that affects trading performance but to me, I think greed is making more influence towards losing all the money in the account. As a trader, you need to have a good habit each day to balance your daily life and your trading life. Don't think Forex trading is your hobby that you can take any time you want but regard it as your real business in which you have limit of time and energy to work each day.