🔥Don’t Burn Out Your Account: A Coaching Reminder for Traders

In trading, ambition is good—but recklessness is fatal. One of the most overlooked truths in this game is that it only takes a few bad trades to destroy months of progress. That’s why risk management isn’t just a rule—it’s survival.

The Risk Trap

I’ve been there before: confident after a few wins, I’d start risking 5–10% of my account on a single trade. One loss later, half of my account was gone. The pain wasn’t just financial—it was emotional, and it made me want to quit.

The truth? I wasn’t losing because the market was “out to get me.”

I was losing because I risked too much, too fast.

A Candlestick Example: The Shooting Star

The Shooting Star candle often appears at the top of an uptrend. Its long upper wick shows buyers tried to push higher but sellers took control, pulling price back down.

Now imagine entering right at the top of that wick with 10% risk on your account. One sharp reversal, and weeks of profit vanish.

But if you risk just 1–2%, that same false breakout barely dents your account. You survive to trade another day.

How to Protect Yourself

✔ Set Clear Risk Per Trade: Only risk 1–2% of your capital. Example: If you have $1,000, that’s just $10–$20 max.

✔ Use Logical Stop-Losses: Place stops beyond key levels (not right on them).

✔ Focus on Longevity: Trading is a marathon, not a sprint. Survival is step one.

✔ Detach Emotion: Smaller risk = smaller stress. You’ll think clearer when not fearing account wipeouts.

Key Takeaway

Big risks feel exciting, but they rarely end well. Proper risk management may feel “slow,” but slow is how you win in the long run.

Remember: Your edge isn’t just in spotting trades. It’s in surviving long enough to let those trades pay you.