The #1 Reason Traders Lose Money And Get Wiped Out

I explain on Tip TV why 91% of traders lose money and get wiped out within 6 months of opening a trading account, plus what you can do now to avoid their mistakes. See video:

Here’s a few tweets below about the interview – thanks guys!

Tweets of Alessio Rastani on Tip TV

Did this video help you? What are your own views on the subject? What other reasons can you think of, other than overleveraging and overtrading, as to why so many traders blow up their accounts?

Leave me your comments below.


  1. Whoa Alessio, you forgot to mention overconfidence! Good interview, mate.

  2. Can anybody explain exactly or precisely what “overtrading” means? It sounds kind of vague. How many trades must you do in a day or week before it becomes too much or “overtrade”?? It’s confusing me.

  3. So many things to think about in this video. Thanks Alessio for sharing this. By the way, Nick (Moose) is so funny! We should have more of him on the show. I would add that learning from mistakes is a must for every trader.

  4. Alessio, Absolutely bang on! So true in my case at the start. I loved what you said ie trade small and take small risks initially.. I also loved what Zak said ie “Good trading is boring .. best traders know that boring is good”

  5. Thanks Alessio; you have to go through the “school of hard knocks” a few times to become good at anything and if you can do that, preserve your account and have fun finding the winning trades then that has to be the way to trade – great interview …

  6. Thank you for the video, Alessio. This, like what you have divulged in your email, is excellent and rings true. It is a keeper as a cautionary reminder what we should ALWAYS be doing. I myself blew up my account this year. Fortunately I retained 40% of the initial capital. First and foremost I will read your email and watch your video every day moving forward before I even start the trading day. Thank you very much and keep up the great work.

  7. Saw the interview,I 100% agree. That’s why I don’t wipe out my balance with the brokers I use and have been with for years. Not 6 months!

  8. When I first started and realized that I had the potential to make it as a trader, the first thing I thought was how I can give back. So I set a goal to donate $30,000 a month to charities. I am not making on declaration on when I will do it, but I am commited to it.

  9. Brilliant and exactly my thoughts.


    Excellent tips!! Thank you for reinforcing these facts. Much appreciated. Can’t wait for the sequel to this interview next week!!!!

  11. I totally agree with the stated reasons why most retail traders lose. I might add that knowledge of how to trade and not truly knowing what your doing is another major reason for blown accounts. Finding a mentor to teach you how to trade is truly a must if you are to have a chance in the trading world.

  12. Hi Alessio,

    Thank you for sharing this important tip! I’ve been there myself and it’s crucial for beginning traders to also be told that trading is not a ‘get rich quick’ activity. Once I realized that point, thanks to yourself, I eventually started to make consistent profits by not being greedy. But I also think traders need to go through that experience for them to internalize the mistake and learn from it.


  13. Hi Alessio,

    Thanks for sharing your experience. it is absolutely true what you said. personally lost a lot with over leveraging where market ( Bankers) closed my trades even when the price from one broker is different from other broker. On one time I had Gold contracts when the market closed them by lowering the price $3 an ounce than other brokers ( I checked the price with other websites).
    I contacted my broker who said the bank providing quotes is giving that price and if i am not happy I should find other broker.
    I believe they do have software to identify traders placing over leveraged trade so those accounts can be targeted easily.

  14. So very true,most beginners lose when starting trading.
    Either they learn or give up.
    However expert advice is essential before starting.

  15. Have not been able to make money in the markets in 25 years. In the last 6 months I have given up. My advice is don’t even try.

  16. Alessio, thanks for sharing this!
    One of the points you make i think is particularly critical, following your “indicators” .
    Having the right software to help you see the patterns and moves and basing your actions on those along with the other points should keep me from losing as much!

  17. Be careful for what you ask for, you just might get it. Success requires tactical patience.

  18. Wonderful tips. Having blown up an account, at least I learned valuable lessons about how the power of emotions can ruin your trading. Brokers actively encourage emotional and risky trading by pushing seminars on trading non farm payroll announcements etc and other news events. They are trying to give the impression that trading is exciting, not boring!

  19. Pingback: The #1 Reason Traders Lose Money And Get Wiped Out … | How Do I Day Trade?

  20. You absolutey right! Thanks for a great and interesting video.

  21. Hi Alessio, great tips on the vid. Blew up my account two years ago and just stopped by withdrawing my last few pennies before it was all gone. I had learnt the rules for spreadbetting and it sounded easy. Like learning how to play chess and your first games are up against grandmasters – you’re gonna lose. So the tip about not overleveraging – brilliant. I felt as if I was putting my money on the table for the brokers to just pick up whenever they wanted to. I lost a lot by spreadbetting on the company I work for. I knew what the price should be doing, except the market didn’t agree with me (yep, the market’s always right!). Joined your premium site recently and once I have dry run a lots of trades I might put my toe back in the water, but I know now the water is filled with piranhas!! All the speak around trading is about excitement. I just want my trading to be boring in future.

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