How many consecutive looses can you handle in trading?

[pawanjain]

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?

For me it's 4 straight losses that burns me from inside and then I stop trading for a while and analyze my trades.
I don't step back in before I am really sure of what I am doing. I usually change the coin or strategy for trading before I get back in.
This actually happened recently and I faced consecutive losses. Now I have started accumulating the losses again by other means.
Once I get enough I will think to start trading again but until then I will probably be on a break from trading.

[1714605991]

1714605991

[South Park]

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 think the first question that comes to my mind is that if you have actually tested your strategy with the previous movements of the market to see how it behaves? If you have not done so then how could you be able to tell if your strategy is becoming less effective? After all there are many instances in which you are just going to have some bad luck and you are going to lose many times in a row, I remember paper trading once and my system lost 22 times in a row and yet it was still profitable, but how? Because of my money management skills that kept those losses small.

[blockman]

I can't count them all, I can have as much as losses as I can but it all depends on the budget. As long as I've got that budget that's already dedicated to trading, it's all up to how many times it can go. But if being in my mood and I think that I've had enough already with my trades, that's when I'm going to stop whether it's just 1 or 2 losses then I'll be stopping. Then if I keep on winning, I might stop too and just take it as the day, just as the same when I've got enough.

[Hippocrypto]

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?

Maybe in times of bearish market I certainly accept the fact that my trading strategies will be failure and ineffective. But this time of huge market potential while we observed that bitcoin keeps growing, I can handle losses with minimal percentage and consider things effective. No matter what happens on your trading, you still have chances while market activities kept changing everyday along with fluctuations.

[tippytoes]

I can't count them all, I can have as much as losses as I can but it all depends on the budget. As long as I've got that budget that's already dedicated to trading, it's all up to how many times it can go. But if being in my mood and I think that I've had enough already with my trades, that's when I'm going to stop whether it's just 1 or 2 losses then I'll be stopping. Then if I keep on winning, I might stop too and just take it as the day, just as the same when I've got enough.

In this market, really hard to count all the losses that you have. As the market can change in seconds, you can lose fast in that time period. So it is actually hard to identify those points especially if you have no reference. Unless, your only reference is the price where you bought it. Then, it is easy to identify whether you lose or not in the trading as you compare it to your buying price. But in general, hard to count as we trade a lot of times and that is hard to track.

[ene1980]

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!

That is a new word profit apathy  . It happens to me while i am gambling when i keeps on winning for months and then i end up making some bad judgement calls simply because i am too confident and wanted to take risk and that is the case with investment. You make money and you think that all your calls will end up making money and it is these judgement calls that can ruin your months of work. I would usually take a long break from any similar activities and now i would take a break when i have the feeling to take much risk.

[blockman]

I can't count them all, I can have as much as losses as I can but it all depends on the budget. As long as I've got that budget that's already dedicated to trading, it's all up to how many times it can go. But if being in my mood and I think that I've had enough already with my trades, that's when I'm going to stop whether it's just 1 or 2 losses then I'll be stopping. Then if I keep on winning, I might stop too and just take it as the day, just as the same when I've got enough.

In this market, really hard to count all the losses that you have. As the market can change in seconds, you can lose fast in that time period. So it is actually hard to identify those points especially if you have no reference. Unless, your only reference is the price where you bought it. Then, it is easy to identify whether you lose or not in the trading as you compare it to your buying price. But in general, hard to count as we trade a lot of times and that is hard to track.

Well, what I meant to count them are for those that I accumulate continuouls in losses which means that I cannot attain to count them if I have to handle those consecutive losses.
Maybe, I can handle as many as I can but no way that I would want to keep losing entirely with my funds and that's why handling those losses will really depend on how much my budget is.

[RealMalatesta]

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 is definitely our available capital dependent and at the same time I'm having the principle of immediately stopping right after a loss. This will help me not facing consecutive losses due to sudden change of market conditions. So, whatever strategy I will be following in one particular day, I may not go for consecutive losses as I will be taking time to analyse for what casing me losses and how a loss happened on my first loss itself.

Usually traders are trying to recover their losses on the day itself which might be the reason why they are facing continuous losses regardless of their strategy and market volatility. If you are taking time by realizing like there are enough opportunities are available for every day and there will be no need to rush on the same day itself, then we can avoid more losses happening continuously.

[Cherylstar86]

I can't count them all, I can have as much as losses as I can but it all depends on the budget. As long as I've got that budget that's already dedicated to trading, it's all up to how many times it can go. But if being in my mood and I think that I've had enough already with my trades, that's when I'm going to stop whether it's just 1 or 2 losses then I'll be stopping. Then if I keep on winning, I might stop too and just take it as the day, just as the same when I've got enough.

In this market, really hard to count all the losses that you have. As the market can change in seconds, you can lose fast in that time period. So it is actually hard to identify those points especially if you have no reference. Unless, your only reference is the price where you bought it. Then, it is easy to identify whether you lose or not in the trading as you compare it to your buying price. But in general, hard to count as we trade a lot of times and that is hard to track.

Well, what I meant to count them are for those that I accumulate continuouls in losses which means that I cannot attain to count them if I have to handle those consecutive losses.
Maybe, I can handle as many as I can but no way that I would want to keep losing entirely with my funds and that's why handling those losses will really depend on how much my budget is.

Indeed. I can also handle losses as many as I can because I know there are lots of chances to get profit. When you lose many times, it means that your strategy isn't working anymore. So better to stop trading and take a break instead of pushing your strategy even if you know it didn't work because you will end up nothing with massive loss. It is better to make another technical analysis in order to build another strategies because it is very important. Studying the graph for at least 2 hours will surely enough to make another strategies. But before you make any decisions, try to relax and take a break to refresh your brain for you to create the best decision to the situation.

[tvplus006]

...Usually traders are trying to recover their losses on the day itself which might be the reason why they are facing continuous losses regardless of their strategy and market volatility. If you are taking time by realizing like there are enough opportunities are available for every day and there will be no need to rush on the same day itself, then we can avoid more losses happening continuously.

If the trader sets himself the task of returning the lost funds on the same day, then in this case it becomes like a casino and usually leads to new losses. Without an assessment of the market situation and the reason for the unprofitable transaction, it is not necessary to open a new order.

[dothebeats]

I can only handle 3 or 4 and I'll just stop trading for a few weeks before I resume again. Most of the trades I do and positions that I take are meant for the long-term, and I do this in order to avoid losing too much money by doing impulsive decisions based on others' analyses or my own emotions. Luckily I have never experienced such a streak, as I learned to never sell at a loss and just hold the coins that I have even if it means seeing red for a few weeks straight. Right now, I'm just buying and holding, and it's way easier than to force myself to trade directly.

[john_nautica]

I can only handle 3 or 4 and I'll just stop trading for a few weeks before I resume again. Most of the trades I do and positions that I take are meant for the long-term, and I do this in order to avoid losing too much money by doing impulsive decisions based on others' analyses or my own emotions. Luckily I have never experienced such a streak, as I learned to never sell at a loss and just hold the coins that I have even if it means seeing red for a few weeks straight. Right now, I'm just buying and holding, and it's way easier than to force myself to trade directly.

I also can take only this many losses, and whenever I do, I take a break to clear my mind and align my emotions once again. It is also necessary that I do technical analysis during this time to formulate new strategies and be able to study graph and the movement of the market. Trading for short-term objectives can be really stressful and much harder so I personally opt more to long-term.

[Cling18]

2-3 losses would be enough for me to stop for a while. I usually allocate enough funds or a portion of my salary for trading. That portion is the number of funds that I could afford to lose. I make sure that I won't have regrets in the future so I'll know when to stop and when to continue. It's just a matter of self control for me.

[LimLims]

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?

OP firstly what do you mean by consecutive losses? Does that mean our whole capital is lost?
As in trading you don’t lose all of a sudden.
It’s an up and down moment.
If you say me about this thing, then recently i had bought some coins of 2500$ by getting a tip.
And sadly due to my luck, it went down to 1300$.
Then I realised that my strategy is not good and i quickly started my backup plan.
Everyone faces something like this and i am damn sure.

[tygeade]

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.

[TheGreatPython]

I can only handle 3 or 4 and I'll just stop trading for a few weeks before I resume again. Most of the trades I do and positions that I take are meant for the long-term, and I do this in order to avoid losing too much money by doing impulsive decisions based on others' analyses or my own emotions. Luckily I have never experienced such a streak, as I learned to never sell at a loss and just hold the coins that I have even if it means seeing red for a few weeks straight. Right now, I'm just buying and holding, and it's way easier than to force myself to trade directly.

Yeah, taking a break certainly helps if you aren't getting desired results from trading.

I usually trade multiple coins and it's hard to say if I ever had a losing streak or consecutive losses because I face loss in some trades but bounce back nicely in other coins.

If you are only sticking to trading a single coin at a time, it's quite easy to count your streak from the trades history and determine.

[Wakate]

For me I can't really handle much loses especially when it's happens after one and other creating phobia of loosing more if one stays in the trade. Continuous loses can affect a traders' psychology when it comes to trading and maximizing profits. Although the aim is to make money in the market but at the same time we need to try our possible best and control ourselves in order not to be affected by trading phobia. The market is not friendly but one can utilize their power when they see opportunity to buy more or sell more provided by the market volatility.

[palle11]

The market is not friendly but one can utilize their power when they see opportunity to buy more or sell more provided by the market volatility.

Yes the market isn't friendly to any trader which is why we need to be careful. Taking opportunity doesn't mean that we have to throw all our money into the market because we think the opportunity is ripe but it might change at the long run , the reason we need to use our stop lose and this is very important.to do

[barbara44]

For me I can't really handle much loses especially when it's happens after one and other creating phobia of loosing more if one stays in the trade. Continuous loses can affect a traders' psychology when it comes to trading and maximizing profits. Although the aim is to make money in the market but at the same time we need to try our possible best and control ourselves in order not to be affected by trading phobia. The market is not friendly but one can utilize their power when they see opportunity to buy more or sell more provided by the market volatility.

Just like gambling, one should pause trading if one is facing loss one after another. Maybe the attitude needs to change and taking a mini-break sometimes helps you realize what recurring mistake you were making because there is no way you are losing just every trade unless there is a common mistake each time.

I am not saying you should just stop trading completely. Taking a break means it's time for self-realization and analysis of what's going wrong which is also a part of trading. Sometimes when people aren't trading they feel they are losing valuable time, that's not true. Self-realization and analysis of own trades are just as important as trading itself.

[blockman]

Well, what I meant to count them are for those that I accumulate continuouls in losses which means that I cannot attain to count them if I have to handle those consecutive losses.
Maybe, I can handle as many as I can but no way that I would want to keep losing entirely with my funds and that's why handling those losses will really depend on how much my budget is.

Indeed. I can also handle losses as many as I can because I know there are lots of chances to get profit. When you lose many times, it means that your strategy isn't working anymore. So better to stop trading and take a break instead of pushing your strategy even if you know it didn't work because you will end up nothing with massive loss. It is better to make another technical analysis in order to build another strategies because it is very important. Studying the graph for at least 2 hours will surely enough to make another strategies. But before you make any decisions, try to relax and take a break to refresh your brain for you to create the best decision to the situation.

We'll be stopping if we think that it's no longer bearable. But as long as I can bear the losses, I'll continue but I won't be making myself at almost zero balance just because I've got a pride and ego in trading. As said by many, emotion won't help us when we trade because it's going to lose us everything. It's not a boast that we can take as much losses that we can, it's just that our tolerance differs from the others and others can justify themselves why they can only take few losses and then stop because it's part of their strategy.