Post
Topic
Board Trading Discussion
Re: How many consecutive looses can you handle in trading?
by
Mpamaegbu
on 24/12/2021, 08:30:32 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.
Most trading strategies do fail during choppy market but succeed during trend (whether bear or bull). Once a trader identifies a trend, the least sensible thing to do would be to ride on it because doing otherwise will be financially suicidal. However, once any strategy begins to make a trader lose money, the best thing would be to take a break away from it in order to reevaluate it. It's not to completely abandon the strategy, anyway.

Well, as for the number of consecutive losses; five will be the alarming figure to make me take a pause.