How To Handle Trading Losing Streaks
Dec 16, 2025
Every trader goes through it - From the most elite hedge fund trader to the trader in their first month, a string of losses or back-to-back, consecutive losses will occur...it is all but inevitable.
However, when we experience a string of losses there are a few actions we take that may sound practical to do but not regularly practiced with new traders. And that's the point to whomever is reading this - we all take similar actions to overcome the mental strain of trading losses.
Here are 10 tips for traders dealing with losses:
1) Step away from the markets.
- Take a breather. Take a walk in nature. Go to the gym. Get your body moving and away from the markets. Step into a different frame of mind. Let this be a part of your trading plan. If you take a considerate number of losses, then take a break away from the charts.
2) Replace emotions with quantified data.
- Detach your emotion from decision making. The way we do that is instead of "thinking" or "feeling" of what to do next in the market because your need to be in the markets take over, look at the quantified data you gathered from your plan and base your position off of the data.
3) Embrace and move on from the decision you made.
- Overcome the anger you may feel after a series of losses. No excuses. No scapegoating. Respect what the Price action is doing currently and accept the decision you have made, win or lose. OWN IT.
- Embrace the long-term edge. Trust the process. Accept that losses are a part of the journey.
5) Do your homework.
- Research and back test during slower/choppier/losing markets. It's a great time to ease off the gas in placing trades and reviewing or plan for the next trending market.
6) Delay Gratification.
- Common societal pressures creates a false expectation of instant gratification but as a trader, we must delay our current want for the greater win. This means stop forcing trades for the want of making money and focus on knowing the profits will come in time.
7) Trust Your Edge.
- Replace fear of failure with the confidence of your system and your ability to follow your system successfully.
8) Kill The Ego.
- Replace the need to be right with the desire to make money.
9) Better Trading Starts from Within.
- No external source is controlling your actions, but we tend to believe that to be true. Only we can stick to our plan, only you are the one clicking the mouse or tapping on the phone for your entry. Are you making the best decision at the given time? or is it based off of external factors? It has to be us.
10) Cut Your Losses Fast.
- Reduce stress by cutting your losses fast. Your trade should end in 4 outcomes: small loss, breakeven, small win, big win.
Understanding that losses are just a part of this trading journey is crucial to understand. The key thing is to journal these losses and learn from your mistakes.
Maybe you are over trading (placing to many trades)?
Maybe your edge doesn't work in certain market environments, and you need to adjust your risk management or entry criteria. Only you will know.
We hope these tips shed some light on things you can do in handling multiple trading losses.
Aloha! We are Glenn & Reid, founders of Hawai'i Trading Academy.
Our Mission: Empower & nurture traders.
Our Ethos: Integrity and transparency guide us as we focus on the essential pillars of trading success: Risk Management, Edge, and Psychology.
Create Your Own Success In The Markets.
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Mahalo for reading.
Safe Trading!
