​Account Killer More Lethal Than a Heavy Position

WikiFX Strategies (30 Mar.) - Traders who refuse to stop loss or close the position timely when suffering losses are holding their orders floating. They take a chance on the market but forget that it is the sharpest account killer even more lethal than a heavy position.

Some people are not willing to acknowledge mistakes. They hold positions floating until making a profit again, but often end up with a terrible loss of hundred points.

There are market changes as high as one to two thousand points every year, thus participants are used to trading on a few hundred points of volatility. In other words, traders always have a few opportunities to see position floating in a year, which, however, will not lead to good performance.

First of all, they might only trade forex for a short period without experiencing any significant market changes. If they continue such an operation, chances are their accounts will be blown up within a half year.

Secondly, they could hardly make a profit even if their positions drift back because they will have missed the opportunity to double the account value.

Besides, as long as you have a loss position floating, you are easy to show negative feelings about the market, which will cause worse mistakes and heavier losses!

On the contrary, if you timely close the loss position and trade on opportunities, earning money is fully possible. Keep this in mind: let your position floating will ruin everything! To trade flexibly is the first rule that overrides all others, and a timely stop loss could serve as the security belt of your account!

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