How many consecutive looses can you handle in trading?

[Rruchi man]

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?

[1714328619]

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[jackg]

With me it can take anywhere between 2-4 but I do mainly long-timeframe trades. Essentially anything I think isn't a breakout from too much of a rise in volume or too little resistence, I normally assume it's me that's wrong.

[sheenshane]

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

It could be 2-3, there's no reason you if exceed on that range since you already know that you have already a failure within consecutive losses, in the first failure it serves warning should learn mistakes, second, trying to correct your mistake and in the third times, that is too much just leave it and find another one.  It's really hard to predict and make your own strategy, trial and error don't seem to work either.

There are too many strategies to try, but all of these didn't have any guarantee that you will succeed in trading.  Plus another factor is, there's no real strategy that gives assurance of gaining profit, all of them will remain predicting the market.

[AmoreJaz]

It could be 2-3, there's no reason you if exceed on that range since you already know that you have already a failure within consecutive losses, in the first failure it serves warning should learn mistakes, second, trying to correct your mistake and in the third times, that is too much just leave it and find another one.  It's really hard to predict and make your own strategy, trial and error don't seem to work either.

There are too many strategies to try, but all of these didn't have any guarantee that you will succeed in trading.  Plus another factor is, there's no real strategy that gives assurance of gaining profit, all of them will remain predicting the market.

and to make the situation more complicated, the trading strategy deviates from one coin to another. the strategy that you used before may not be applicable to a new token in the market. so for me, you can't really tell how many losses you can handle especially if you are talking about different alts. but each loss should give you specific lesson in trading. it may not be applicable to your next trading activity but you can always apply it when the situation calls for.
for sure, most of us have had so many losses in crypto trading already and yet we are still here, trading in crypto market. each situation will give us more insight on how to handle our funds better. we should not stop trying as it means giving up in this market.

[Bitcoin_Arena]

There are so many factors such as my win rate before I started making consecutive losses or how tight my stop losses are. Tighter stop losses means my account won't take a huge hit whenever I make a wrong call, so I can make as many consecutive losses as possible minus getting concerned. Maybe 6-7 consecutive losses if my previous win rate was above 60% with the same strategy

[Questat]

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

I could still take until 3 losses, that is supposedly 3 consecutive losses then we could certainly be seeing it is no longer effective and a must to change a new one. If we are seriously doing this trading you can assess your strategy if it is still working or not, as not all the time it works too well, there is a time that not your strategy is the cause of your losses but sometimes is due to our emotions and wrong decision.

3 straight losses were the max for me to think about I'd stop using this strategy or to take some rest.

[GreatArkansas]

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

Hmmm, I am not really basing on consecutive losses since sometimes my risk: reward ratio for each trade I do is different.
But if ever all same risk: reward ratio and trade size, more than 10 consecutive losses will become less effective, since I have a small position size for every trade I do.
That's why capital preservation is extremely important when we do trading.

[cabron]

The market today truly had changed because we now see how much the inflows and outflows to and out of the exchanges and sometimes the strategies that use to work doesn't anymore. The indicators show something yet the market acts differently and that is why you as a trader will somehow think the market is rigged. Well, you're not the only one who thought of that.  The only strategy that works well in crypto is long-term investment.

[tranthidung]

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

• Use small capital of yours to trade, like GreatArkansas said. I'd prefer to use 10% to 20% of my capital for trading.
• You have to self-limit total trades daily and if you break that limit, it is reasonable if your bad trading rate increases.
• The market has important movement or decisive days. It is when you should not trade. So if you ignore risks, and continue your trading in such days, higher bad trading rates are expected
• My threshold: 6 trades daily with one coin, if I find any to trade. If I lose 2 trades, I stop trading in that coin.

[Dave1]

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?

Probably in the range of 5 or more tries. Then I switch trading strategies, but I go and see what went wrong with the previous losses, and try to found out what could I have done to avoid those losses and not to commit it again.

And it just shows that there are no perfect strategy, sometimes you get lucky with bad trading strategies, but most likely it will lead to such losses in the future.

[mk4]

Mid-long term trader/investor here. 4 consecutive bad picks would probably be where I start to doubt myself but would probably think that it's just "bad luck", and 5-6 consecutive bad picks would probably be where I start to deeply re-think my lifeinvesting strategies.

^Thankfully the last time I've had that bad of a track record was in 2017-2018.

[adaseb]

The generally rule is, if you are having a bad day and keep getting loses its best to take a break and come back tomorrow to trade. Because this is the spiral that leads to most traders who end up losing all their capital. In Poker they call it going on Tilt. It means that you don't make rash decision anymore and the trades you are taking are making no sense pretty much.

You can easily see this in the markets. Say the market is going up, most retail people enter. Then all of a sudden there is a huge crash. Most of the people get liquidated or stops get hit, and then there is usually some huge move back up. And thats when the retail people get liquidated again who went short. It happens alot in crypto and its very bad to get caught in those moves.

[CryptopreneurBrainboss]

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.

If this be the case then take a break instead of quiting, we have many traders that give up so early and easily which has alot to do with them not trading in their safe zone (that's using funds that won't cause much damage if the trade don't get their way). Someone using a trading capital of $1000 or above doesn't have to wait for much number before he realizes his trading strategy isn't effective anymore for him.

My consecutive losses to take a break is three, like I always say to myself three is a pattern. If I missed a trade, I'll consider that a mistake, two will just be a coincidence but three has to be a pattern which means I'm heading in the wrong direction and my strategy isn't working anymore. It doesn't matter what your conservative loss number has to be to rethink your strategy but do learn from everyone of them to avoid making similar mistakes in the future.

[perfect999]

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

I think two is enough, or maybe three, just in case you feel you should go further and try. You shouldn’t try too much, because if you keep trying you will be losing too much of your money that you would have used the right way. So, two or three is enough for you to take a break and then start looking for a solution to develop a better strategy that is going to work out for you. Though another thing you have to know is that the way you use that strategy matters a lot. And it’s good to not forget to make use of important tools that will help to reduce your risks.

[C@$seia_PereZ]

For me, every loss will give us insight into where we made a mistake while trading. It might not be useful for the next move but it can be applicable for the future one when the time calls for it. Still, to be precise, it's a maximum of 2-3 losses because by then I came to know that my strategies aren't working and what to do for next. To not make the situation complicated, I will start to apply different strategies for one coin to another. Everyone in the crypto industry must have experienced the loss at least a time still we all stands here and trading. We shouldn't stop trying until we succeed.

[Zilon]

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?

Most times the issue is not with the strategy but with the analyst. There is this excessive confidence that comes with trading for longer time and this is where lots of traders get stucked. A trader might have a sweet strategy but patience to get a confluence before taking a trader becomes the issue and end up getting stucked which result in losses.

For me once I have three consecutive losses at a stretch I suspend trading for one week go back to review my trades , take up new trading courses, correct my mistakes then bounce back to the market

[arwin100]

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

I think two is enough, or maybe three, just in case you feel you should go further and try. You shouldn’t try too much, because if you keep trying you will be losing too much of your money that you would have used the right way. So, two or three is enough for you to take a break and then start looking for a solution to develop a better strategy that is going to work out for you. Though another thing you have to know is that the way you use that strategy matters a lot. And it’s good to not forget to make use of important tools that will help to reduce your risks.

Well that's a quick exit and I think I cannot recover my losses by doing that since its really hard to earn  if you quit quickly that's why I set some amount to trade and if all of my capital for that day has been drained that time I stop and comeback on the next day. But actually we have different strategies upon handling our losses and we should stick to our plan then never try to break it so that we will still at a good phase even if we are losing.

[Ararbermas]

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?

one or two losses is enough.. And that's very obvious tho, that your strategy isn't working anymore .. So better to stop trading and take a break instead of pushing your strategy even it didn't work because you will end up nothing with massive loss..
Make another technical analysis in order to build new strategies because that's the most important, for me 1 to 2 hours of studying the graph perhaps its enough to make new strategies.
But just relax or take a break before making decision to refresh your brain and never force the situation.. Try your luck in other day because if it's not working well you cannot do anything with that.

[Wexnident]

Back when I was doing short trades, I can handle around 2-3 losses since I tend to quit early when I see (or at least my read says) that the market would go down and I wouldn't profit anymore. I never lose that much since I make sure to take a closing position where I wouldn't lose out that much but would still be able to handle a small dip that wouldn't make my position close. It sometimes make me lose out on possible profits though since I want to minimize my losses, but hey, that's how I go.

[feelideb]

If i make consecutive 2 to 4 losses within a period of a week, I am likely going to stop and clear my head and restrategize! These kind of scenerio happens when I must have made good call consistently over a period of two to three months. At some point, I begin to get profit apathy,  and I could start making wrong call from that point forward!