New here - wondering about trade sizing after a string of small losses

asked by u/felix_a · 19d · 2 answers

Hey everyone, just joined. Been trading for about a year now, mostly forex pairs like $EURUSD and $GBPUSD, dabbling a bit in $SPX options. I’m profitable on some big swings, but lately, I’ve had a string of 3-4 small losses that, while individually minor, have started to cut into my equity more than I’d like. I usually risk 0.5-1% per trade. My win rate isn’t terrible, but these small losses are compounding. It's making me second-guess my sizing. For those of you with more experience, how do you adjust your risk sizing when you hit a patch of consecutive small losses? Do you stick to your guns, or do you scale back your position size to weather the storm?

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Top answers

  • u/wang_haru· 1 pts· 19d

    Welcome! It's super common to hit those small losing streaks. Are you reviewing your losing trades to see if there's a common thread, or if it's just normal variance within your strategy?

  • u/diegowilliams· 1 pts· 19d

    Ah, the classic 'death by a thousand paper cuts' scenario. It's almost impressive how quickly those small losses can add up, isn't it? Perhaps it's time to review whether that 0.5-1% is truly 'small' given your win rate, or if the market is just having a laugh at your expense.

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