Losing periods usually destroy a traders confidence and most novice traders tend to over trade, go on tilt or have major drawdowns.

Great traders are able to identify what the problem is (if there is any). They’re able to keep their risk/ size in check, not jump from strategy to strategy.

For me, whenever I have a big losing day/ week I do the following:

1. Identify if it’s a bad loss or a good loss. Meaning am I taking good high probability trades with well defined risk

and are the trades just not working in my favor or am I taking stupid trades?

2. If it’s bad trades then take a step back and see what I need to change in my process/ approach/ strategy. Maybe the market conditions changed, and my current strategy doesn’t work in this condition

3. I typically try to protect capital and play risk off. Most of times when we lose money, our first instinct is to MAKE IT BACK, and what faster way to make it back then to SIZE UP HEAVY. so I reduce risk no matter what

4. I keep risk minimal until I can have 2-4 winning trades to feel the confidence and trades working

5. I then look to pick up size and stay active with current size

This helps me stay alert on my trading and it helps me reduce major drawdowns.