Knowing the difference between a strategy that's not working for you and your style of trading, and one that has given you a few losing trades lately is a tricky concept for a lot of traders to grasp. I hear about traders that have a few losing trades and think it's solely the strategy they're using, and so they switch strategies and are still experiencing losing trades. These are common problems that a trader will face, and making the wrong assumptions can lead to disastrous decisions. It’s important for you as a trader to truly understand how common losing trades are so you know what to expect, and really familiarize yourself with statistics behind trading.
You want to make sure you avoid being too over-confident when trading because being it can cause you to lose way more than intended. A lesson you can take away from this is to remember, never change your approach to your money and risk management depending on your most recent results. Something else you can take away from this article is losing streaks will happen for every single trader, and it does not mean that your trading strategy doesn’t work or mean you’re a bad trader. If traders would stick to their strategies just a little while longer instead of giving up in times of struggle, there would be a lot more profitable traders in the industry.
It’s important to remember that winning and losing streaks are normal, and there are ways to make sure you handle both situations perfectly. In times of winning streaks like I said above, avoid your ego getting over confident. Don’t increase your risk when you’re on a roll, don’t over-trade and let all your rules for the market go out the window. In times of a losing streak, don’t get anxious and try to make up for past losses by increasing your position size, and don’t make any changes to your strategy. You can only get yourself out of the hole by staying calm, and consistently executing your trades. The Apiary Fund reviews this all the time, and they encourage you as an individual to find your style of trading so the strategy that fits it will back up your trades. The Apiary Fund reviews these strategies with their community and reach out to traders to see what's working for them, what they are doing differently, and how you can make it yours. However, use what you want and apply it to your own strategy. I hope this encourages you to not give up on yourself.