5 Tips to Help You Break a Losing Streak

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3 min

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

Don't be so 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.
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general risk warning

CFDs are complex instruments and entail a high risk of losing money rapidly due to leverage.

83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

NOTE: This article is not an investment advice. Any references to historical price movements or levels are informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. Information regarding past performance is not a reliable indicator of future performance. Forecasts are not a reliable indicator of future performance. In accordance with European Securities and Markets Authority's (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.


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