There is no happier moment in trading when every trade you make is profitable. The more profitable trades you make, the more confident you become at the same time the more risk you take. Many traders are so confident that they consider themselves capable of beating the market.

But there will come a time when the method you use does not work as it should, or the market conditions change, or you have not kept the original way of trading without your knowledge. At times like that, you can lose a lot, besides losing money, you will lose the confidence you previously had. A chain of losing trades can cost you money, but if you lose it, you lose everything. To learn how to get back into shape after a series of losses and know how to maintain a stable mentality and trade in the long run. Here's what you need to do to achieve this goal.


Avoid real trading for a while

Take plenty of time to rest and stay away from trading no matter how attractive the market is. During this time, control yourself and gain the patience you need to stay out of the market. When you encounter a series of losses, avoid trading for at least 2 weeks that will help you keep a lot of money that is not worth it.

Identify why the strategy that was once effective has failed

Sometimes traders lose money just because market conditions change. Your job is not to lose to the market but to learn to recognize what is your strength to focus on trading. When the market changes, it is best to simply limit trading or even stand out.


But another case where you lose money is because you fail to keep up with the principle that you lose heavily. In this case, you need to review the trades you have meticulously made to find the reasons for the chain of orders to failing.

Trading planning

Once the cause of the loss has been found, we can start trading again. However, the next thing is not to open the chart and trade but start over by planning your trade, adjusting a few principles so that it is stricter and more disciplined.


Backtest resumes strategy and resumes trading when the right market conditions return

After having a plan, do not rush to trade again, backtest the strategy with the plan you made earlier. Backtesting helps you to grasp the principles as well as how to operate the method first after a short break and review the trading process.

When re-trading, remember to always comply with all trading principles and capital management plans. These are the top 2 reasons why traders lose money. And sadly, these are two factors that the trader can completely control.


After resting, your psychology has gradually stabilized, then trading according to the principles is a way to help you stick to the method, tight capital management helps you to have a stable mentality, limit risks, Thus, it is not difficult to have the chain of profitable transactions back. And even if a chain of losses is encountered, it will also be within the permissible risk limit.