Gil Ben Hur Blog | How To Deal And Recover From A Trading Loss Or Losing Streak | Talkmarkets
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How To Deal And Recover From A Trading Loss Or Losing Streak

Date: Tuesday, October 13, 2020 10:37 AM EST

How to get right back into trading after a series of losses

Losing is painful. We don’t like to lose. But in forex trading, losing is part of the business. The sooner you understand that you will experience some losing trades along the way, the better.

No matter how accurate your trading strategy is, some percentage of your trades will result in losses. So don’t worry about those good trades that resulted in a loss, BUT, let’s see what to do if we suffer a series of consecutive losses.

If you are going through a bad losing streak, these are the steps you need to take:

  • Stop Trading, and take a break of 24 hours.
  • Review what is failing, you, or your trading strategy.
  • Tune your trading strategy and stick to your rules.
  • Develop a Positive Trading Mindset
  • Reduce lot size and exposure.
  • Find a trading community or a mentor
  • Get back to trading.



Stop trading

Think of losing trades as holes. If you fall into a little hole, it will be easy for you to climb out. But if you keep digging and making the hole bigger, it will be harder for you to come out of it.

If you are losing multiple times, you need to temporarily stop trading. Take your time to calm down and review what is causing the losses. We recommend at least a 24 hours break.


Review what is failing, you, or your trading strategy.

There are good trades that fail and bad trades that succeed. You need to make sure you are only taking good trades, those that align with your strategy and system.

If you are only taking good trades and still facing consecutive losses, you need to review your strategy. Maybe your strategy works on trending markets or certain timeframes. Make sure you are using the right strategy for the actual market condition.


Tune your trading strategy and stick to your rules.

Each strategy is built for certain market conditions. Some work on consolidations, some on trending markets, some during high volatility periods, and so on. You need to have a plan and a strategy for every environment, and once you know what strategy to follow, you need to stick to your rules. You need to be very strict about when to enter a trade and when to get out, as well as risk management measures in place. Make sure you are using stop losses and the right lot size per trade.

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