Tuesday, August 30

How to recover from Losing Streak

Losing Streak/Trading Slump are inevitable in trading.A losing streak can be a sustained draw down in capital, where loses occur day after day, or a losing streak can even be a period of low returns where you are just doing breakeven.
As market are dynamic in nature and a change in trend of market which does not suit your trading style can lead to big losses if you are unprepared how to deal with them. Current move in Nifty where its trading in small range from past 30 days or even S&P 500 is having the smallest trading range seen in last many years, If you are not prepared to handle such market condition, you can see a big blow in your trading account and can lead to losing streak which can last several weeks/months.
What defines a Professional trader is How he is able to deal with this period of losing streak, As the saying goes the Harder the time more tougher you becomes. If you’ve been trading for a while, then I know you can relate to what I am talking about here. Consecutive losses put you in a state of ‘panic’ which severely degrades your decision making process.

Here are some tips you can take to stay positive during a losing streak:

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