#firstdealofthenewyearFateema Traders lose their capital in the market due to several common mistakes, poor risk management, and emotional decision-making. Here are some key reasons why traders blow up their accounts: 1. Lack of Risk Management • Overleveraging: Using too much leverage magnifies both gains and losses. A few bad trades can wipe out an entire account. • No Stop Loss: Failing to set a stop loss can lead to massive drawdowns, especially in volatile markets. • Poor Position Sizing: Putting too much capital into a single trade increases risk. A single bad trade can cause significant losses. 2. Emotional Trading • Fear & Panic: Selling too early due to fear or panic can lead to missing out on profits or realizing unnecessary losses. • Greed: Holding onto winning trades for too long in hopes of making more money often results in losing profits. • Revenge Trading: Trying to recover losses by placing reckless trades often leads to further losses. 3. Lack of Strategy & Discipline • No Trading Plan: Trading without a well-defined strategy leads to inconsistent results.