How many consecutive looses can you handle in trading?

[avikz]

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?

Well that depends on an individual. For me, it is not based on the numbers of trade but it is based on the amount of money I've lost from trades. If any particular day I see more 20% loss from my capital trading amount I stop my trading activities for that day. So there is no straight forward answer.

Also, in crypto trading it is very difficult to follow a certain strategy as the market is super dynamic. So it is wise to take decisions as per the market dynamics rather than depending on a particular strategy. The only strategy is to safeguard the capital in case anything goes wrong.

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[leea-1334]

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!

I do not think 2 or even 4 losses in a row invalidate your strategy,,, that is what stop loss is for, you still have to try a long sample for all strategies and in all market conditions only then can you see if it is working out or not.

Nevertheless taking a break is always good to sit back and reconsider how you felt and why it happened.

[topbitcoin]

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

I think until all my money is gone i will stop doing trading. But i rarely do future trading so maybe i still can hold coins that i already bought. Because in future, big chance if we can get liquidated and it can made all our capital in future balance gone. But in spot, as long we not sell our coins, we still have chance and only need to hold our coins for better price.

[cheezcarls]

If I were to be asked like that, I could handle at least 2 to 3. However if I treat the money that I’ve traded as “dead money” or an amount that I can afford to lose, it could be a bit more than 3, 4 or so. It applies to all types of trading. In copy trading, I’ve even experienced losing up to 5 times and I just stopped.

[michellee]

This question confuses me because if I lose in trading, let say the price is down, I will not sell the coin instead will hold for some time. I do not consider that is lost because the price will increase again, no matter if it takes some time to increase.

When I trade, I do not use too big of funds to buy because I know that I do not have to chase a big profit but a small profit is enough for me, especially if I can take the next profit. So, whenever if the price is down, I only need to wait until the price increase back.

If in one trade I lose, I will use the other money and move to the other coin and if I got another loss, I would just stop for a while because I guess the market moves is unpredicted and if I still trading, I can get more losses. But sometimes, I only trade in one time to check how good the market move.

[geegaw]

If I were to be asked like that, I could handle at least 2 to 3. However if I treat the money that I’ve traded as “dead money” or an amount that I can afford to lose, it could be a bit more than 3, 4 or so. It applies to all types of trading. In copy trading, I’ve even experienced losing up to 5 times and I just stopped.

5 failures can be your luck in copy trading as since this feature was just launched, many people have become slaves to a few experts on commissions, they are the ones who get ad invitations from trading apps and these apps pay and improve their win rate, aim is to target newbies and no time to trade, entrust opportunities and ultimately, burn user's money. The number of losses to determine the effectiveness of the trading strategy, I also think 3 times is enough, testing more than just exhausting our selves

[kram31]

In my assessment, as an individual traders here in cryptocurrency you can only loose if you sell your assets at the lower price of your bought price value. But if you are not selling your assets in the exchange platform even the price goes down I cannot say your losing your capital, of course not. And if you think that the value of your assets is not progressive better for you to find other coins that are much better than you are holding it at the moment.

[DarkDays]

People have different tolerance levels for loss, personally, 2-3 is the region I start questioning things. As many people are aware, the success rate depends on the strategy used and timing as well as use of a stop-loss.

I mainly do long-term trading and a few short-term trading and I try to not be market reactive - I've learnt over time that this is when you lose most of the potential profit! So as long as the loss can be justifiable I keep at it - sometimes might also be due to the nature of the market involved - so being aware of these factors helps tease out where the error occurred to avoid next time.

[tvplus006]

Every unprofitable transaction requires identifying the reasons that led to the loss. And if, after such an analysis, the next trade is also unprofitable, it is necessary to take a break in trading until the market becomes more understandable for you. The main thing in trading is not to give in to emotions in the hope of quickly recovering what you have lost, otherwise your losses will become even greater.

[Handpari]

I divided  my whole portfolio into two parts. In first i have invested on long term coin like Doge,Ada,Eth,Bnb. I have no tention whether market grow or dump.
In Second part i invested on high volatile coin which can give me 2× to 20×. I can afford only 4 consecutive losses. But still i am safe from 4 consecutive loss.

[AakZaki]

Some of the losses experienced when trading are due to ineffective strategies and the wrong way of trading. people who continue to lose don't learn from their previous mistakes. It's not just strategy that matters, psychology when trading will also affect the final decision made.

Do good management before trading. Everything has to be thought about. Don't trade without good planning. study technical analysis and fundamentals so you know where the market is going.

[zanezane]

There's no exact number for but if I lose about 50% of daily trading fund that I impose when I trade, I would probably stop trading that day and collect my thoughts and ready myself for the next day. I think that will be the only way to survive in trading, you blew off big time, you stop early to prevent losing too much.

[el kaka22]

I could actually lose all the time, you know why? I do not end up trading with too much of my money, and that is why I do not really feel like anything at all when I lose. Think about it, if you keep it at 10% constantly and that is why the biggest loss I could ever have is 10% of my entire portfolio, and that doesn't change constantly neither, like let's say I have 1000 dollars, and I have 100 dollars trading, just because I lose 100 bucks doesn't mean that suddenly I have 900 and will trade 90 dollars, I still consider that 900 dollars as my investment portfolio and I will use another extra 100 dollars for trading when I find it, and mean while increase my overall investment neither.

So, long story short I never lose too much, the biggest loss could be 10% and I usually do not really spend that much money on single trade neither as well.

[Smartvirus]

I rely can't place a timing on it but, it would comeore as a feeling to me. Emotions are a bad way to trade but certainly not a bad option when it comes to considering your trades gone wrong. Perhaps I loose trades in a day and then a second day and then it tends to move the same way with with particular strategy then, it ought to mean something to me. It ought to tell me that, the strategy in use isn't just working and then the need to look out for a different way to trade the market while, taking notes on what seems to be causing the changes in the market and how the market instruments responds to it.

[dimonstration]

For the first time, we will indeed be confused with the market, as if what we do is always wrong, so we feel discouraged. let alone to accept consecutive losses. but from the beginning I always limit it to 2 times a day. and when that happened, I learned to stop trading at that time, and the next day started looking for opportunities again

There were times I uninstalled crypto-related apps when I lost in trading when I just saw started, but somehow knowing that trading is a future we will truly find ways to learn it. It's hard especially at the start, there were times we will lose our money many times until we can realize what we can do and know that its a worth trying. It will depend on how much we lose and still how were able to earn and survive the greedinrss and decision making part. Though, it will always be tgere but atleast we now know how to maximize the winning and minimize the losses.

[Zilon]

I do not measure how much value or amount to form a strategy, or you can say I do not have a strategy. I only trade to get instant profit, I mean after buying coins I immediately make a sell order with a profit of 5-10%, if it sells I will make a buy order again at a price below what I sold. I do this repeatedly, and if the market is red I will not sell and will stay until my sell order is completed.

If there is no strategy then it's pure gambling. Even if you scalp the market you can't just trade against the trend and expect to make profit. They market it self comes with lots of surprises because even experts experience losses how much more one without a strategy you will only end up paying those with a strategy your hard end coin

[isaac_clarke22]

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5 consecutive losses and it is losses by the way OP, not looses. I switched my strategy to long-term when I consecutively incur losses 5 times, buying and selling my preferred coins.
I just go and decided to "f it, all into Bitcoin" now. It was a newbie experience anyway, but I guess emotion came through me that time.

[bocyaj]

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?

It was countless when I had entered this field. Most of the traders in this field will lose some money and earn a experience and not a profit. The profit is not a matter at the initial stage.When the market up and you had learned the trading, the profit will knock your door every day.

[Kelvinid]

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5 consecutive losses and it is losses by the way OP, not looses. I switched my strategy to long-term when I consecutively incur losses 5 times, buying and selling my preferred coins.
I just go and decided to "f it, all into Bitcoin" now. It was a newbie experience anyway, but I guess emotion came through me that time.

That suffer 5 consecutive losses will surely tell that our strategies aren't effective anymore or it was a sign to quit. I think we don't need to force ourselves seeing this is a sign that trading isn't for us.

For me, I could take 3-5 straight losses and it was enough. Maybe I have to stop for a while but if it is the same results during my next try, I couldn't dare to continue making myself compromise with such losses. This will signify that we are not destined to become a trader, maybe there is a right place for us.

[Lanatsa]

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?

It was countless when I had entered this field. Most of the traders in this field will lose some money and earn a experience and not a profit. The profit is not a matter at the initial stage.When the market up and you had learned the trading, the profit will knock your door every day.

Mistakes are your best teacher but would really be depending on how someone would be accepting towards their progressive learning towards the market and not all would really be having that kind of mindset on where they should learn up something despite of those losses.

Asking me off on how many consecutive losses that I do able to handle then it would be limitless but im trying out to minimize as best as I can even though it is hard but doesn't mean that it would be
impossible.

Just do gain experience as you go forward and learn everything that you could encounter and make analysis from it.