The Psychology of Losing Streaks
A 1-minute lesson from the MarketPro academy, one of 22 in risk management.
Losing streaks happen to virtually every trader, including those following a sound, well-tested approach. Understanding why helps prevent a normal statistical stretch from turning into a bigger problem.
Losing streaks happen to virtually every trader, including those following a sound, well-tested approach. Understanding why helps prevent a normal statistical stretch from turning into a bigger problem.
Variance Is Normal
Even a strategy with a positive long-run expectation can still produce a run of losing trades purely due to statistical variance. A handful of losses in a row does not automatically mean a strategy has stopped working, just as a handful of wins does not automatically confirm it works.
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3 more sections of The Psychology of Losing Streaks, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.
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Not investment advice. Past performance is not indicative of future results.
Lesson 10 of 22 in Risk management
Run the numbers while this is fresh
The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Position size calculator, Risk of ruin calculator, Drawdown calculator, Profit & loss calculator.
The whole academy is free in the app
All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.
Not investment advice. Past performance is not indicative of future results.