Post
Topic
Board Trading Discussion
Re: How many consecutive looses can you handle in trading?
by
Alert31
on 22/08/2021, 22:53:04 UTC
It is popular opinion sometimes that a trading strategy might no longer be effective if one begins to loose money while trading instead of gaining.

An important question i ask myself whenever i hear about people complaining or simply discussing a series of consecutive looses they have made while trading using a certain strategy is;

HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?



Handling your losses is depends on your emotions and capital. If your negative emotions are higher than your positive view of your trade, it will ruin your strategy and it will cause huge losses. If so, it is better to take a break and calm down before re-trading. But if you don’t have capital due to successive losses, I think that’s a sign to leave trading and find another type of investment that is suitable for you.