For several consecutive weeks, this trader demonstrated a stable performance. Not exactly '100% wins', but every trade was well within parameters: reasonable risk, emotional control, and especially adherence to strategy. Until a big unexpected volatility appeared — and everything collapsed in one night.
The breaking point lies not in technique – but in psychology.
He sees an opportunity… or at least thinks so.
No confirmation signals. No clear scenarios.
Simply the fear of missing out (FOMO) arises – that familiar emotion that many traders stumble upon.
Cumulative wrong decisions:
• Entering trades hastily with high leverage.
• Not placing stop-loss.
• When the market reverses, instead of cutting losses – he 'averages down'.
Core mistake? Believing the market 'will bounce back as usual'. But this time it didn’t.
Just after a few candles – the entire account is wiped out.
The lesson here is very clear:
Not a bad strategy. Not due to a harsh market.
It's due to un disciplined trading. Emotions take over. Reason surrenders.
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Analyzing the reasons for failure:
1. FOMO kills the plan.
A worthy trade should never force you to rush. If you find yourself hasty, take a pause.
2. Lack of stop-loss = suicide.
No stop-loss means you have put your account in the hands of chance. And chance is never a strategy.
3. Averaging down while losing – the formula for disaster.
Not every time holding on is bravery. Sometimes cutting losses is a sign of skill.
4. No risk control = no chance of revival.
A trade should never ruin your entire capital. If that happens, it's your fault – not the market's.
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Strategic perspective:
• The market never 'runs out of waves'.
Missed today, there will be another opportunity tomorrow. The surviving trader is the winning trader.
• "Discipline" is not a slogan – it is a matter of survival.
Account ATHs all begin with consistency. Conversely, 'wipes out' always come from a few moments of impulse.
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🔥 A conclusion for you:
If you’ve ever encountered a similar situation, let it be a lesson. Don’t underestimate the signs of 'emotions controlling you'.
Please comment and share your experience – have you ever faced a situation like this?
And if you find this post helpful, don’t forget to save it to remind yourself every time your hands start itching to trade.
