How many consecutive looses can you handle in trading?

[Alert31]

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.

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[Rexler]

For me i don't really welcome much losses, I try to make sure my trades are good enough and onset and if a trade gives me a loss I will check if I got enough equity I will do hold on the trades and be rest assured it will end up in profit. Well I think the amount of loss I can handle depends on the account size, if I got a bigger account then I can handle up to 3 or 4 loosing trades and if the market doesn't moves in my favor I will know such strategy isn't working for me any longer so I did change pattern of trading

[tvplus006]

The effective work of a trader is related to how much he can emotionally restore his strength. And if a trader cannot recover, then this will necessarily have a negative impact on his transactions. Therefore, after the second unsuccessful transaction, it is necessary to analyze it and take a break from the market.

[Cherylstar86]

The effective work of a trader is related to how much he can emotionally restore his strength. And if a trader cannot recover, then this will necessarily have a negative impact on his transactions. Therefore, after the second unsuccessful transaction, it is necessary to analyze it and take a break from the market.

Indeed. Risk is always been there in trading, it is up to you on how to handle it. Once you experienced losses so many times and you can handle it and you don't mind it, you will be successful in your trading. Indeed. The effective work of a trader is related on how much he can emotionally restore his strength. If he can't recover and lose money again and again, it will give a negative impact to all his transactions. So, if you want to be successful in trading, analyze everything first and make sure you have proper knowledge about it and you do a lot of research before entering this kind of platform.

[Pamadar]

For me i don't really welcome much losses, I try to make sure my trades are good enough and onset and if a trade gives me a loss I will check if I got enough equity I will do hold on the trades and be rest assured it will end up in profit. Well I think the amount of loss I can handle depends on the account size, if I got a bigger account then I can handle up to 3 or 4 loosing trades and if the market doesn't moves in my favor I will know such strategy isn't working for me any longer so I did change pattern of trading

Having that kind of system gives you good opportunities in adjusting your strategy.

Working system is very important as it will give you an edge over those other traders who don't have any. Traders that have capabilities to assess and understand the potential of those assets that they are using for their trading have a better chance to earn decently. It's a good practice to give some time with your strategy as crypto trading is too volatile. Rushing each decision can cause you to lose more.

[taufik123]

-snip- So, if you want to be successful in trading, analyze everything first and make sure you have proper knowledge about it and you do a lot of research before entering this kind of platform.

analysis is very important. use technical analysis and also Fundamentals must be considered. Technical Analysis and Fundamental both have a relationship about crypto prices that will move.
not just analysis, capital management and initial strategy must also be determined. do not trade without knowing the direction and without a goal. All should really be considered. consecutive losses because they do not care about the aspects that must be done before starting and when the trade is made.

[South Park]

I guess there's no set number of losses after which you realize that trading isn't your thing and is not working. It all depends on how much loss you are making each month and whether or not there is any improvement in the results.

For example, if you had 1k capital and lost $50 with your first month of trading. Now that's fine as long as your loss in the next month is not more than $50 because it shows you learned something and are improving at it.

If you are losing more or the same amount each month, it simply reflects the inability to learn and maybe a sign to stop.

While trading is very hard one of the easiest ways to know if you have what it actually takes to become good at it is to paper trade, if people took the time to set up a strategy and then paper trade that strategy for at least 100 trades and they were to see what were their results then they could easily see if they can become good traders or not, after all if you cannot succeed under those circumstances which are the most favorable then you should not try to become a trader at all.

[Shasha80]

-snip- So, if you want to be successful in trading, analyze everything first and make sure you have proper knowledge about it and you do a lot of research before entering this kind of platform.

analysis is very important. use technical analysis and also Fundamentals must be considered. Technical Analysis and Fundamental both have a relationship about crypto prices that will move.
not just analysis, capital management and initial strategy must also be determined. do not trade without knowing the direction and without a goal. All should really be considered. consecutive losses because they do not care about the aspects that must be done before starting and when the trade is made.

Consecutive losses will not occur if we do careful planning before trading. Most people think trading is too easy, they think it's just buying coins
at low prices and selling them when prices go up. Even though trading is very complicated, there are many factors that we must prepare for.
So as not to make the wrong decision and make us suffer losses. As you have explained many things that must be prepared before deciding
to trade, we must have good analytical skills, and can also use well-planned strategies. So don't trade without any preparation, it will only
waste our money.

[milewilda]

-snip- So, if you want to be successful in trading, analyze everything first and make sure you have proper knowledge about it and you do a lot of research before entering this kind of platform.

analysis is very important. use technical analysis and also Fundamentals must be considered. Technical Analysis and Fundamental both have a relationship about crypto prices that will move.
not just analysis, capital management and initial strategy must also be determined. do not trade without knowing the direction and without a goal. All should really be considered. consecutive losses because they do not care about the aspects that must be done before starting and when the trade is made.

Consecutive losses will not occur if we do careful planning before trading. Most people think trading is too easy, they think it's just buying coins
at low prices and selling them when prices go up. Even though trading is very complicated, there are many factors that we must prepare for.
So as not to make the wrong decision and make us suffer losses. As you have explained many things that must be prepared before deciding
to trade, we must have good analytical skills, and can also use well-planned strategies. So don't trade without any preparation, it will only
waste our money.

Consecutive losses does only happen when we are just still noob which is understandable but once you do already be having that experience and skills then those losses would really be minimized.
Its not we do really totally get rid of it but at least we do know that we can really lessen the chance for it to occur via making good trading decisions.It might not be an assurance but at least you do
able to hit up on your goal or still on the profitable side.Losses would be always there and wont go because there's no such thing about perfect trader or investor.
As you do gain experience then you would really be gaining some edge.

[Kimonoe]

I guess there's no set number of losses after which you realize that trading isn't your thing and is not working. It all depends on how much loss you are making each month and whether or not there is any improvement in the results.

For example, if you had 1k capital and lost $50 with your first month of trading. Now that's fine as long as your loss in the next month is not more than $50 because it shows you learned something and are improving at it.

If you are losing more or the same amount each month, it simply reflects the inability to learn and maybe a sign to stop.

While trading is very hard one of the easiest ways to know if you have what it actually takes to become good at it is to paper trade, if people took the time to set up a strategy and then paper trade that strategy for at least 100 trades and they were to see what were their results then they could easily see if they can become good traders or not, after all if you cannot succeed under those circumstances which are the most favorable then you should not try to become a trader at all.

right, by trying 100 trades we can analyze ourselves, so what will happen and how much profit we get or how much we lose, in the end we can draw conclusions. I think we will continue to see developments, if there is no development in trading, then we have to think of something else that is more profitable

[jostorres]

analysis is very important. use technical analysis and also Fundamentals must be considered. Technical Analysis and Fundamental both have a relationship about crypto prices that will move.
not just analysis, capital management and initial strategy must also be determined. do not trade without knowing the direction and without a goal. All should really be considered. consecutive losses because they do not care about the aspects that must be done before starting and when the trade is made.

You made a good point although a little irrelevant to the actual topic. I think as long as you are doing the fundamentals correctly, you shouldn't be too worried about losses.

There are sports teams that lose a lot of matches in a row but that doesn't mean they should stop competing because results don't always reflect the preparation and efforts being put behind.

If you are trading with the right fundamentals and not making any mistakes, you should just disregard the losses and continue working hard on the strategy you have picked for yourself.

[LUCKMCFLY]

In my case, I only allow to lose 2 times, because if I lose a third time it is because I am not seeing the trade correctly and my strategy is not correct, the reason why I allow myself 2 times is for the following reason, yes I make 1 trade and I lose it, when I make the 2nd trade I have to recover what I lost in the 1st trade and if I lose the 2nd trade, I have to recover and leave with a neutral balance with the third one, now if I lose the 3rd trade I have to assume the loss and wait as long as it takes to have market clarity, because obviously I'm not getting it, and that's how I protect myself.

The market always gives good opportunities to enter, you don't have to rush, you just have to be patient.

[sana54210]

Having that kind of system gives you good opportunities in adjusting your strategy.

Working system is very important as it will give you an edge over those other traders who don't have any. Traders that have capabilities to assess and understand the potential of those assets that they are using for their trading have a better chance to earn decently. It's a good practice to give some time with your strategy as crypto trading is too volatile. Rushing each decision can cause you to lose more.

I do believe that there is a good chance people could end up with that kind of strategy after a while. I do believe that we should not be focusing on the profits that people are making right now but focus on the profit you could make in the future. Like for example I bought at 100, and it drops to 90, instead of selling and losing I just put that aside and that is called "bag" and I will hold that bag as long as I have to, eventually it will become 100+ and I will be in profit.

I have done this for a very long time, in fact I turned into a holder in the longer from all the bags I held once upon a time, now they are still in profit but I do not sell them because I like the fact that holding them makes me profit. I still do trading a little, but whenever there is a "loss" as in a price drop, I just turn that into a long term holding instead of trading and I still win.

[taufik123]

-snip- So don't trade without any preparation, it will only
waste our money.

Preparation before trading is indeed something that must be considered.
preparation includes research and strategies to be used, and prepare your psychology.

-snip-
As you do gain experience then you would really be gaining some edge.

Experience becomes really very valuable to shape us in the future. Trading skills that are continuously trained will provide a good experience, you will understand what you need to improve to make trading better and reduce the risk of loss.

-snip-
If you are trading with the right fundamentals and not making any mistakes, you should just disregard the losses and continue working hard on the strategy you have picked for yourself.

Trading with the right fundamentals is also followed by the right analysis. Both are absolute to do. it will further minimize errors and losses. also pay attention to psychology, because it has an important role. your psychology will be trained when in market conditions that do not allow for profit.

[palle11]

For me i don't really welcome much losses, I try to make sure my trades are good enough and onset and if a trade gives me a loss I will check if I got enough equity I will do hold on the trades and be rest assured it will end up in profit. Well I think the amount of loss I can handle depends on the account size, if I got a bigger account then I can handle up to 3 or 4 loosing trades and if the market doesn't moves in my favor I will know such strategy isn't working for me any longer so I did change pattern of trading

There are different areas of your response here and I will respond all together. First, understand that losing is part of the trading business and a strategy that has been working for you to make profit does not need to be changed because of a loss, because such loss can be temporary. The market plays a funny one on the traders so that your effort looks rubbish to you. You can look deeper to understand is just market going wrong and not your strategy, it will get back to be corrected again after the volatility.

And holding up a losing trade is a waste of time for you because you will also get stocked as the trade, use stop loss, minimize your risk so that a lost trade can matter just little and you have another chance to trade.

[Lanatsa]

For me i don't really welcome much losses, I try to make sure my trades are good enough and onset and if a trade gives me a loss I will check if I got enough equity I will do hold on the trades and be rest assured it will end up in profit. Well I think the amount of loss I can handle depends on the account size, if I got a bigger account then I can handle up to 3 or 4 loosing trades and if the market doesn't moves in my favor I will know such strategy isn't working for me any longer so I did change pattern of trading

There are different areas of your response here and I will respond all together. First, understand that losing is part of the trading business and a strategy that has been working for you to make profit does not need to be changed because of a loss, because such loss can be temporary. The market plays a funny one on the traders so that your effort looks rubbish to you. You can look deeper to understand is just market going wrong and not your strategy, it will get back to be corrected again after the volatility.

And holding up a losing trade is a waste of time for you because you will also get stocked as the trade, use stop loss, minimize your risk so that a lost trade can matter just little and you have another chance to trade.

Thing here is that majority of us is trying to be perfectionist on where we don't really like to suffer loss and when we do then that's the time frustration and stress kicks in which is really very wrong.

Losses are really normal because there's no such man to be called on having perfect trades.What we do have here is that we do tend to really be sustainable and that's what people should be thinking off.

Consecutive losses would happen and as mentioned it would always be ideal on setting up stop losses and minding off on how you would able to recover those losses on your next trade but of course

you don't need to rush up yourself because it would just create some hasty actions which would really likely to make more losses which we don't really like for it to happen.

[tnyldzerdm60]

I am just getting started in business life. For trade, I chose the food field that people cannot give up.
  I am now creating my own market and customer base in the long run. I analyze expectations. I'm looking for opportunities. I do different product researches about where and what I can market.
So far, I have not lost in my attempts yet. Maybe my background in the sales industry makes me a little more foresighted. If you have started to lose 30% of your capital, there must be something wrong!!!

[Shenzou]

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?

I personally test a strategy many time on a demo account across multiple days in order to determine that it is worth trying out with real money or not, and one the win outweigh the losses i go in, but in terms of consecutive losses i would do 2 in a row and than come back another day, if see that i am still losing than i would go back to the planning board adjust test and repeat.

[Shasha80]

~

~

Consecutive losses will not occur if we do careful planning before trading. Most people think trading is too easy, they think it's just buying coins
at low prices and selling them when prices go up. Even though trading is very complicated, there are many factors that we must prepare for.
So as not to make the wrong decision and make us suffer losses. As you have explained many things that must be prepared before deciding
to trade, we must have good analytical skills, and can also use well-planned strategies. So don't trade without any preparation, it will only
waste our money.

Consecutive losses does only happen when we are just still noob which is understandable but once you do already be having that experience and skills then those losses would really be minimized.
Its not we do really totally get rid of it but at least we do know that we can really lessen the chance for it to occur via making good trading decisions.It might not be an assurance but at least you do
able to hit up on your goal or still on the profitable side.Losses would be always there and wont go because there's no such thing about perfect trader or investor.
As you do gain experience then you would really be gaining some edge.

It should be when we have experience and skills consecutive losses can be avoided. But it is impossible not to lose at all, because even
professional traders are still experiencing losses. The most important thing in trading is that the amount of profit we make is more than
the amount of loss that we experience. If we are afraid of losing and do not want to lose, we should not need to trade at all. Because if
we trade, we must be prepared to face losses, because losses can only be minimized, cannot be eliminated.

[Ultegra134]

3 Consecutive losses were enough to make me rethink trading and reach for something else. Took a decent hit right when Musk invested into Bitcoin, one more somewhere in the middle and the last one was when the market plummeted, and I sold. What a terrible mistake.

The worst one is certainly the last one, I was getting anxious seeing the prices drop so fast, decided to sell and move to DeFi. One day after I sold, the market recovered to a great percent, if I hadn't made that mistake, I certainly would have saved a couple of hundred bucks.

Trading was generally an anxious process, now I'm investing in DeFi sporadically, I'm good for now and haven't suffered any losses (yet).