Struggling with position sizing and conviction post-loss
Hey everyone, fairly new to actively trading beyond long-term holds and I've hit a wall after a couple of unexpected $EURUSD moves earlier this month. My initial risk sizing strategy felt okay on paper, using a fixed percentage of my account per trade, but after taking a couple of hits that wiped out a week's worth of gains, I'm finding it incredibly difficult to re-enter positions with the same conviction or even to stick to my original sizing. It's like I'm second-guessing everything and my stops are getting tighter to the point of being unrealistic, leading to getting whipsawed out constantly. How do experienced traders here manage to regain that psychological edge and stick to their plan after a series of losses, especially concerning position sizing? Is there a method to ease back in, or is it more about just grinding through it until the confidence returns?
It sounds like you might be over-leveraging or your stop-losses aren't tight enough if a couple of moves are wiping out a week's gains. Perhaps revisiting your risk-per-trade percentage is in order, especially if it's impacting your ability to trade objectively.