Sunday, November 15, 2020

5 Tips to Help You Break a Losing Streak

 Let’s face it: even the best traders find themselves in a losing streak from time to time. What distinguishes a skilled trader from a rookie is how they handle the situation.


So what can one do the try and break a losing streak? Keep reading to find out.  


Don’t get emotional

“Easier said than done” you might think and you’d be right – it’s hard to control your emotions when money is concerned. But think about it this way: emotions lead to rash decisions, which in turn leads to more losses.


Instead, you may want to think of a series of losing trades as a sign that you need to adjust your strategy, change the instrument or explore other analytical tools.


Take a break

They say that markets are cyclical. Perhaps, this was a universally unfortunate time for trading and you just need to wait it out? This well may be true.


Take a break, be it for a few hours or for a day. Take as much time as you need to clear your head and to properly evaluate the next time you plan to enter the market.


Accept inevitable losses

Out-of-the money trades are inevitable. Even highly successful traders who have an 80% win-rate lose those 20% of deals. But guess why they remain successful after all? They don’t let those setbacks discourage them.


Educate yourself

If you find yourself in a losing streak, chances are you have more to learn about trading. Take a look at our educational videos or read up on the subjects that seem most complicated to you.


Turn your unprofitable trades into valuable experience. Better yet – spend time practicing risk-free with your Practice Account. That’s exactly why it’s unlimited and always available to switch into in 1 click.


Manage your capital

Let’s be real. When you find yourself consistently losing money, it’s highly important that to you have a money-management plan in place.


First order of business – cut your losses. You may want to set a limit on your daily trading volume or to reinvest only a small percentage of your profit.


A losing streaks can happen to anyone, that’s just the volatile nature of trading. If you ever find yourself caught up in one, just remember: a successful trader is not the one who doesn’t lose, but the one who doesn’t give up.