Handling Losing Streaks

Why strings of losses are normal even for good strategies, how likely they really are, and a step-by-step plan for trading through a rough patch.

Streaks are normal

Every trader goes through losing streaks. Even a strategy that wins half the time will produce several losses in a row fairly often, simply because of chance. Streaks feel like proof that something is broken, but most of the time they are just the math of probability showing up.

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