When your currency loses value every month, a sense of urgency kicks in: “I have to do something with my money right now.” That urgency is exactly what scammers take advantage of, and it’s what destroys trading accounts. In 14 years, I’ve seen these five mistakes over and over again.
1. Confusing savings with trading
Protecting your savings and speculating are two different things. For savings, there are dollars, stablecoins from major issuers, gold, bonds, or funds. Trading is a separate account, funded with money you can afford to lose.
2. Trying to “beat inflation” every month
If inflation is 5% a month, someone sets a goal of making 10% a month trading. To do that, you have to risk a lot per trade, and then a single bad streak is enough to wipe out the account. A professional trader thinks in years, not months.
3. Falling for “brokers” that promise a fixed return
No serious player guarantees profits. If someone offers you a guaranteed 20% a month, it’s a scam. I wrote a guide on how to choose a reliable broker and on the criterion I use to rule one out instantly.
4. Using all the available leverage
Just because the broker gives you 1:500 doesn’t mean you should use it. Leverage multiplies losses just as much as profits. I calculate my position size based on the stop loss (or the level down to which I average) and the percentage I’m willing to risk.
5. Trading without an exit plan
Before entering, you need to know what you’ll do if the price goes against you: close with a stop, average down by levels without increasing the volume, or wait with a small, calculated risk. What destroys accounts is improvising with the entire deposit at stake. I make money through calculation, not guessing.
What to do instead
- Separate your savings from your trading capital.
- Start on a demo account or with a small amount.
- Learn a strategy with clear rules. You can start with my free express course.
- Test a withdrawal before depositing more.
Where to trade
These are the brokers and exchanges I use that work with clients from Latin America. Always check that the service is available in your country, and start small.
Risk warning: CFDs, Forex, and crypto derivatives carry a high risk of losing money due to leverage. This article is not investment advice.
