Absolutely, taking sometime off to reset is very crucial especially during a losing streak, there is nothing bad with taking sometime to unwind. So as not to get clipped with our emotions. Having a losing streak is normal, but being totally out of control in such a situation is what poses greater risk.
This can be avoided if only gamblers, gamble with a stipulated amount of money readily available for such purpose with limits, this in a losing streak the gambler is solid, and can decide every next step with break or not.
Gambling in my opinion should be done with the aim of relaxing, meaning not prioritizing the goal is to make money, because when the main goal is to make money, this can usually make you feel uneasy with defeat that is more dominant and we will experience it more often. And what you said is true, when you are in a situation like that it can cause great risk and yes, I think there have been many things like this. Of course, big losses will not occur if we can gamble properly, such as by having limits set on the funds allocated for gambling. The occurrence of big losses due to the emergence of uncontrolled behavior, this can be said by feelings that are indeed in disarray.