Struggling with position sizing consistency, especially after a losing streak
Hey everyone,
I've been on a demo for a while, getting the hang of my setups, and finally decided to go live with a small account a few weeks back. Things started okay, but I've hit a bit of a wall with position sizing. I understand the general rule of thumb – 1-2% risk per trade – and I try to stick to it. But what I'm finding is that after a couple of losses, I start second-guessing myself. Sometimes I'll unconsciously reduce my size on the next trade, even if it fits my criteria perfectly, almost like I'm trying to conserve capital too much. Other times, I might size up slightly out of frustration, which I know is a huge red flag. It's not a conscious decision, more like an emotional drift.
I'm curious how seasoned traders here maintain that disciplined sizing, especially when the market isn't cooperating. Do you use an automated calculator every single time? Or is it more about building a psychological muscle that just takes time and screen hours? Any tips on keeping that consistency, particularly when emotions are running a bit high, would be massively appreciated. I feel like this is holding me back from truly evaluating my strategy's edge.
It's a common issue. After a losing streak, the natural inclination is often to reduce size out of fear or increase it out of frustration, neither of which is a sound strategy. Perhaps the initial sizing was too aggressive to begin with if a couple of losses are enough to derail the plan.