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