TERRIBLE Forex Trading Mistakes - Mistake No.5 - Trading with TOO big numbers

Hey guys, how are you? Vladimir here from Traders Academy Club. In this video, I continue in my series of videos about trading mistakes traders do and suggest my trading solution to that. As always, very important to mention, the purpose of this video is educational and to offer a fair solution to a common mistakes traders do. You could agree with me or you could completely disagree with me. Of course, 100% fine and acceptable. And I do want you to help other traders. If you agree or disagree, let us know. Let me and let the other followers that will watch this video know your suggestion to the mistake and the problem. I am about to share. And thank you very much in advance for your help, of course. But right before I'll jump in the mistake and elaborate about it, if you are new to this channel, welcome to our fantastic community. I would like to invite you to subscribe to the channel. Please follow the subscribe button below the video, and please remember to enable the notification button so you know when a new content is available for you. As well, I really would like to invite you to join us in our trading family, the Traders Academy Club, and follow our work in our Telegram channel. You can find the links below this video in the description or in the pinned comment inside the comment section. So the mistake I would like to talk about, um, today and cover in this video. And by the way, as you might already know, uh, this is just one video of a series I did. Uh, you can find all these mistakes videos inside a dedicated playlist. Today I want to talk about a popular mistake. I would even say a very popular mistake. Trading with too big numbers or numbers that traders cannot afford. This is a very popular mistake for beginners, especially in forex. What am I talking about? Some traders come to this market without their fault because that's what, you know, that's what they promote, right? Use $100 to earn $10,000. That's what the online promote, which is a problem by itself from my point of view. But it's important you understand the whole thing behind it, right, and the mistake, and then approach with the right solution. So what is the mistake I'm talking about? Again, trading with too big numbers, numbers that you can't afford. What do I mean? Uh, trader puts $200 and open, for example, 0.2 lot. Okay, so every 100, uh, pips, and he would be simply against him, of course, and he would blow the account. He will lose the money. The leverage traders do, it's more they can afford Per trade. Now, there is nothing wrong with that if this is money that you can really allow yourself to lose. If you are like completely fine with losing $200 in your account and then just fine, just put extra $200, no problem. But the mistake I am referring to is for those who $200 is a lot for them, and $200 out of $200, it's full account loss. $200 out of $1,000 would be 20% loss. It's huge. And it's important you understand it because it might sound small, right, for some. Like, yeah, just $200 out of $1,000, come on, I still have $800 to play with. And that's correct. However, and this is a big however, I want to give you a real truth. about this subject. If you cannot, and I repeat, if you cannot prove yourself that you are responsible with little money, if you know how to protect little money, if you know how to earn using little money, you would never, and I repeat, never be able to behave differently and see different results. with bigger money. It's that simple. If you, um, you can take it to the world of, uh, gym, for example, working out. If you don't use the right techniques to lift your weights with small, um, weight, then you would never be able to do that with the high weights. The technique is, is in you, and that's why You must use reasonable risks that you can afford with numbers you can afford if you really want to see successful results. So the mistake is, as I just said, a lot of traders, what they do is they trade numbers that they can't afford and then they lose sleep they sleep worse because it's big numbers. So they just open the charts to see what happened during night, waking up, right, just to find out what is going on in their account. So I hope you understand that this is a terrible mistake. It would not lead you to good places for the long run. And if you want to reach the level where you do trading in a successful way, you must start with working with numbers that are in your size. And what is your size? I mean, I don't say it in any negative way, but if I would now try to go and compete with Mike Tyson or Khabib Nurmagomedov or any— or anyone else, Most likely I would be knocked out or choked. I have to start with someone who is my size. Even though I'm a big guy, my techniques would never be as their— so I probably have to do it with, uh, the right person. And so do you in trading, okay? And the solution to this problem and to this mistake traders do starts with understanding what is a risk per trade and what is the risk per week and other period. What do I mean? Risk per trade, um, could be— could vary. It could be anything between 0.5%, 0.1%, 1%, 2%, but it should not be anything like 10%, 20%, 30%, or 40%. And one of the ways to solve this problem is to work with percent risk. Most traders, what they do is they just open a fixed lot without understanding how much money they risk because they just came to the market and they just, okay, let's buy or sell. Okay, and the leverage and the borrowed money from the broker sounds tempting and And they fall in this trap. So the first thing I would suggest is instead of just going and open 0.1 or 0.2 or 0.5 or 1 lot for every single trade, start changing and switching it to percentages. So risk, for example, for the beginning, 0.1 or 0.2 or even half percent, no problem, as long as this is the amount of money you can allow yourself per trade. So if you have $1,000, risk half percent would basically be $5. It sounds ridiculously small, right? But as I said before, if you can't protect your capital as long as it's little, you would never be able to do that when it's big. Trust me, I saw thousands of traders falling in the same traps, doing the same mistakes, and I was there too. That's why I allow myself to be here today and And to record this video sharing with you personal experience. Okay, trust me, it's painful. So start small. Make sure you are working properly because with smaller numbers you would be able first to let your trades work without checking the charts too often. 2, really stick to your strategy and not cutting your profits early and letting your losses run. Three, sleep well. Four, develop your further future skills in trading and get familiar with the strategies and develop your skills in the trading world. Because if you burn yourself too fast, you will develop no skills. You would you develop a complete anti to forex. And other trading markets. So start small with a percentage risk. There are many different solutions for that— risk calculators, automatic risk managers, et cetera, et cetera, et cetera. If you need any help with that, don't hesitate to contact me. We also offer solutions for such needs in trading as well, so please feel free to contact me in the comments or my team. And then after you start with the percent, go and do it. Next step, maximum allowed loss for a day and for a week and for a month. For example, you are using 0.5% per trade, maximum risk per day would be 1.5% or 2%. Per week, 4% and 5%. Per month, 10%. Why is it important? Because it will allow you to stay in the game and not burn yourself too fast. There is nothing wrong with going backwards and dropping down a little bit and then to recover. This is a journey of a trader, okay? But it is completely wrong to go and risk very big since the very beginning and then stay with nothing. Okay, I hope it makes sense to you. And my request to those of you, if you have experience and better solutions, please share it in the comment section. Let other followers and other viewers enjoy your experience and your help and your solution. Uh, and thank you very much in advance, of course. For, uh, for your help. And the last thing, if you find this video or this, uh, subject videos and other videos I upload here, please hit the like button below this video. The YouTube algorithm requires these likes, so your help is very much appreciated and very much needed and very much welcome. And thank you very much, of course, in advance. So that's pretty much it for this video. It's one video of the series I created to talk about a very important subject, and not just to talk about subject, but also offer a real solution. Once again, I would like to invite you to join us in Traders Academy Club, enjoy all our real-time trading ideas, real-time trading education, and basically trading family where other members are there to help and to share from their own experience, their own ideas, their own trades. So the link's below and I hope to see you with us. Thank you very much for your time watching this video and the other videos. I hope you find it helpful and useful. Stay safe, be well, and I'll see you soon. Bye for now.