⚠️ How to Avoid Burning Your Account Before Learning to Trade
🔎 1. Don't trade just because you "think" something is going to happen
The market doesn't move on intuition or hunches. Before entering a trade, ask yourself:
✅ Is there a clear reason for the price to go up or down?
✅ Has the price reacted in this area before?
✅ Am I seeing a signal indicating a possible turn in the market?
If you don't have clear answers, don't enter. Waiting for a good opportunity is better than entering on impulse.
🔄 2. Look for reversal signals before entering
Don't buy at the top or sell at the bottom just because the price has gone up or down a lot. The market leaves clues before it turns.
📌 How to identify them?
✔️ Candles with strong rejection at an important level.
✔️ A quick movement in one direction that then reverses.
✔️ The price touching an area where it has changed direction before.
If you see these signals, it could be an opportunity. But if you enter without confirmation, you might be chasing the price at the worst moment.
🎯 3. Decide how much you are willing to lose
Before thinking about how much you will gain, define how much you can lose without it affecting you.
💰 Basic rules:
✔️ Don't risk more than 1-2% of your account on a single trade.
✔️ Use a stop loss to protect yourself if the market moves against you.
✔️ If you feel pain losing that amount, it's because you risked too much.
💎 4. Don't seek to gain little by risking a lot
Many beginners do the opposite: they risk 100 to gain 10. This way, they only need a few losses to destroy their account.
📌 The key is balance:
✔️ If you risk 10, try to gain at least 20 or 30.
✔️ Not all trades will be winners, but if your gains exceed your losses, you'll stay afloat.
🚀 Don't rush, protect your capital
Trading is not about winning fast, but about learning without losing everything in the process.