Why do 90% of traders blow their accounts right after pressing the buy button?

A friend of mine came to me last month with 6,000 USDT, and his first words were a sigh: “Hey, I’ve blown up three times, almost back to zero last time. Is there a quick way to recover?” I shook my head immediately: “If you still believe in making a fortune overnight, it’s best not to trade anymore. I don’t teach gambling, I teach how to survive to make money.” He reluctantly stayed and followed my trading system for exactly one month. Result: not only did he avoid blowing up, but he also made a net profit of 8,000 USDT. The phrase that stuck with me: “It turns out making money isn’t about luck, but about control.”

1. The Root of Account Blowups: You Don’t Lose to the Market, but to Yourself Many blame the “sudden market,” but the truth is 90% of accounts are doomed the moment the trade is entered. Most common mistakes: Using leverage like a gambler Always thinking “this trade is sure to win,” maxing out leverage. As a result, a 1% price fluctuation can wipe out the account. Losing then holding on, winning then taking profits early Going negative and repeatedly adding to the position in hopes of a rebound, until a sudden pullout breaks the bottom. Profiting with trembling hands, exiting as soon as it turns slightly green. Trading excessively to feed the platform Entering dozens of trades a day, with profits not enough to cover transaction fees. Even more painfully, many avoid the truth: losing 90% doesn’t mean you only need to make 90% back; you need to make 9 times the profit to break even. Few are willing to sit down and calculate this before rushing to “recover.”
2. My Survival Principle: Rules Are More Reliable Than Feelings I often tell newcomers: “When you trade based on emotion, you’re very close to blowing up your account.” My system isn’t complicated, just revolves around three core principles. (1) Capital Management Is Life Total position size never exceeds 20% of capital. Each trade risks a maximum of 2% of the account. When the market trend is unclear → stay out. Better to make less than lose money. (2) Use Few Indicators but Use Them Correctly I mainly use Bollinger Bands, and they’ve saved me many times: Widening bands → trade with the trend. Narrowing bands → reduce position size, watch out for false breakouts. Don’t wait for complicated crossover signals, focus on: Is the price holding above/below the middle line? Is volume supporting the move? (3) Stop Loss – Take Profit Must Be Mechanical Place stop loss 5–10 points outside the previous low/high to avoid candle wicks. When in profit, move stop loss to breakeven. A profitable trade must not turn into a loss.
3. Early Lessons for Beginners: The Ability to Resist Noise The fastest thing to kill a trader isn’t price volatility, but emotions. Common traps: Seeing others boast about profits → panic, follow the crowd into trades. Winning several trades in a row → illusion of being a “genius,” go all-in. My self-discipline methods: Trade only 2–3 times a day, enough to turn off the software. Don’t hold overnight positions on weekends to avoid unexpected news.
4. The Nature of Contracts: Tools, Not Money Printing Machines Many people criticize contracts as gambling, but in my view: tools aren’t wrong, users are. Large organizations use contracts to: Hedge risks Balance portfolios Most small investors want to: Change their lives quickly Recover losses rapidly If you find yourself in one of these states, my sincere advice is to step away from contracts temporarily: Constantly thinking about “quick recovery to break even” Losing sleep and mood due to losses Believing “this time is different” and breaking discipline Final Words: Making Money Comes Later, Surviving Comes First The market always changes, but the survival rules do not: Enter lightly – follow the trend – cut losses decisively. If you’re still unsure or want to optimize your trading system, you can reach out for further discussion. No one guarantees quick wealth, but reducing unnecessary detours is a huge advantage. Learning is the greatest asset you have in this market.