Losing streaks are inevitable in technical analysis trading. Learn how to deal with them and protect your account, confidence, and health.

This is something that all investors are likely to come across at varying points in their investing journey. 3 tips from me: 1) keep a journal and honestly critique your work (its the only way you learn) 2) don't give up. It's easy to throw in the towel when things get tough but long term investing is exactly that, long term! 3) take a step back. sometimes you can get 'too close' to the markets, a little perspective can work wonders!

How do you handle losing streaks in your trading account?

Losing streaks are inevitable in trading, especially when you use technical analysis to identify market trends and signals. However, how you deal with them can make a big difference in your long-term performance and psychology. In this article, we will share some tips on how to handle losing streaks in your trading account and avoid common mistakes that can worsen your situation.

1 Accept your losses

The first step to handle losing streaks is to accept your losses as part of the trading process. Denying, rationalizing, or blaming external factors for your losses will only prevent you from learning from your mistakes and improving your strategy. Instead, you should acknowledge your losses, review your trades, and identify what went wrong and what you can do better next time. This will help you develop a growth mindset and a positive attitude towards trading.

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Louis Coke

Investment-led professional helping CEOs, Founders, senior execs and their families to grow, keep and make the most of wealth
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This is something that all investors are likely to come across at varying points in their investing journey. 3 tips from me: 1) keep a journal and honestly critique your work (its the only way you learn) 2) don't give up. It's easy to throw in the towel when things get tough but long term investing is exactly that, long term! 3) take a step back. sometimes you can get 'too close' to the markets, a little perspective can work wonders!

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Jahir M.

Founder & Chairman at JJBB Equities Limited
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I always say few things to my students and others. Here are few: My BEST TEACHER is my LAST MISTAKE. - Always review and admit your mistakes and rectify it so that it doesn't happen again. Never say "NO" to anything or, anyone because, to me NO means "Next Opportunity". - Take the Hits as losses are part & parcel of any business. Your Next Opportunity could be better than the loss you took. Always do your Fundamental Analysis correctly and then, trade with the Technical Analysis. Don't be GREEDY and have a SET TARGET of P&L for your trading period whether it's daily, weekly, monthly... Don't OVERTRADE. Be PATIENT. And, overall No matter how much Qualified and Experienced you're, remember that you're STILL A STUDENT like me

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Chirag Jain

"Unlocking Opportunities in B2B E-commerce: Transforming Business Relationships for Growth"
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Navigating Losing Streaks in Trading Facing losses in trading, especially with technical analysis, is normal. How you respond matters. Accept losses, analyze mistakes, and learn. Shifting mindset from blame to growth boosts long-term performance and trading psychology.

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2 Reduce your risk

The second step to handle losing streaks is to reduce your risk exposure and protect your capital. When you are in a losing streak, you may be tempted to increase your position size, leverage, or frequency of trading to recover your losses quickly. However, this can backfire and lead to more losses and emotional stress. Instead, you should lower your risk per trade, use appropriate stop-losses and take-profits, and trade less often until you regain your confidence and edge. This will help you avoid blowing up your account and preserve your mental capital.

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Art Fonseca

Independent Financial Services Professional
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I have found for my own trading, that risk reduction is a vital consideration. I keep a mental or predetermined % of loss I am willing to accept on every position. I try to buy buy stocks which are in a consistent upward movement by using trend lines. I also make it a point of watching for increased volume spurring upward momentum. I watch for increased selling at any point along the way. I use daily, two day, and weekly charts to give me a more in depth picture of of time, volume, and potential direction. I have learned to take partial profits and partial losses from all positions. And equally important, I don't marry my stocks (very tough). Nor do I chase them. I also will try to pick a good entry or exit point on a live chart.

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3 Review your strategy

The third step to handle losing streaks is to review your strategy and make sure it is still valid and effective. Sometimes, losing streaks can be caused by changing market conditions, such as volatility, liquidity, or trends, that may not suit your strategy anymore. Therefore, you should test your strategy on historical data, backtest it on a demo account, or paper trade it on a live account to see how it performs under different scenarios. This will help you adjust your strategy, optimize your parameters, or switch to a different one if needed.

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4 Seek feedback

The fourth step to handle losing streaks is to seek feedback from other traders, mentors, or coaches who can offer you valuable insights and advice. Trading can be a lonely and stressful activity, and losing streaks can affect your self-esteem and motivation. Therefore, you should reach out to other traders who have experienced losing streaks and learn from their stories, tips, and strategies. You can also join online forums, communities, or groups where you can share your trades, ask questions, and receive constructive criticism. This will help you improve your skills, broaden your perspective, and find support.

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5 Take a break

The fifth step to handle losing streaks is to take a break from trading and recharge your energy and focus. Losing streaks can take a toll on your physical and mental health, causing fatigue, anxiety, depression, or burnout. Therefore, you should step away from the charts, the news, and the markets for a while and engage in other activities that can relax and rejuvenate you. You can meditate, exercise, read, listen to music, or spend time with your family and friends. This will help you clear your mind, reduce your stress, and restore your balance.

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6 Learn and grow

The sixth step to handle losing streaks is to learn and grow from them and use them as opportunities to become a better trader. Losing streaks are not failures, but feedback that can help you identify your strengths and weaknesses, refine your strategy, and enhance your discipline and resilience. Therefore, you should embrace losing streaks as part of your trading journey and use them as catalysts for improvement and innovation. This will help you achieve your trading goals and overcome future challenges.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you handle losing streaks in your trading account?

1

2

3

4

5

6

7

1 Accept your losses

2 Reduce your risk

3 Review your strategy

4 Seek feedback

5 Take a break

6 Learn and grow

7 Here’s what else to consider

Technical Analysis

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How do you handle losing streaks in your trading account?

1

2

3

4

5

6

7

1 Accept your losses

2 Reduce your risk

3 Review your strategy

4 Seek feedback

5 Take a break

6 Learn and grow

7 Here’s what else to consider

Technical Analysis

Rate this article

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