How to overcome a bad streak in trading?

Almost all traders, if not all of them, have experienced a negative streak of trades. Whether it’s a week, two weeks, or a month, I don’t know, everyone has their own numbers, but the truth is that few escape a series of negative trades.


There is also another truth, and that is that not everyone survives that bad streak.


Because they get demotivated, they blow up their account, they fail the funded account challenge they were participating in, they change their strategy, they change their academy. There are many different reasons for each individual.


In this post, I’m going to give you some ideas on how you could overcome a bad streak. These are not necessarily step-by-step instructions, but rather general aspects to consider, and by combining some of them, they will help you recover and continue on this exciting path that trading is.

So, here are those ideas, strategies, or aspects that I would like to share with you today:

1.The first thing you should know, which I mentioned at the beginning, is that most traders go through a bad streak at some point in their trading journey, even those who have been consistently profitable for many years. So, it’s not the end of the world, it doesn’t mean you’re not cut out for trading, and it’s not that the market is against you. It’s simply something that happens, and that’s how it should be seen.

2.The mindset with which you approach this moment is of vital importance. We all know that recovering from a negative streak is very challenging, but with the right attitude, it will be much easier. The key is to learn from it, see it as an opportunity to reconsider concepts, adjust details, or understand that it’s just a specific moment in the market to which you haven’t been able to adapt quickly enough, but you will find a way out.

3.Something that not everyone is capable of doing, or doesn’t see as necessary, is to take a break. Yes, taking a pause allows you to step away from the emotional intensity of the moment and see the situation from a better perspective, clear your mind, and formulate a plan of action to reverse the situation and move forward.

Once you distance yourself from the market, you must do something that is not easy but necessary: accept your losses. What happened, happened, and you can’t change it, so the best decision is to face it with a learning mindset and move on, focusing on future solutions instead of dwelling on the past. Losses are part of trading, and the sooner you get used to them, the better.

So far, I’ve given you a few ideas related to emotions and mindset. Dealing with a bad streak can bring frustration, demotivation, or anxiety, and you may feel like you won’t succeed, but don’t worry, it’s something that can be worked on.

1.Keep a trading journal. It’s important to have a record of all your trades so that you have the opportunity to study them. Once you’ve distanced yourself from the market and, above all, from the emotions, it’s time to review each trade and identify opportunities for improvement in your trading approach.

2. Conduct backtesting of your strategy. Many people lack the discipline to do this, but it’s important to note that sometimes a bad streak is actually part of the statistical nature of strategies. What can be considered a bad streak for your strategy? How many negative trades make it up? If you have conducted extensive backtesting, you’ll be able to calmly see that a certain number of negative trades are part of your statistics, and you’ll handle it with relative ease. The problem arises when you don’t know the numbers for your strategy, and a bad streak for you might be just three negative trades, prompting you to want to change your strategy.

  • Study your risk management. When you have your trading history recorded, you can assess how you have managed your risk. Have you overleveraged? Have you taken risks you can’t afford? Do you have risk management rules or policies aligned with your strategy and, above all, your capital? Proper risk management can save you from bad streaks because it can include rules in your trading plan that prevent you from having a long series of negative trades and force you to stop before that happens.

Seek support from successful traders in your close circle or on social media. Look for mentors, educators, and academies that can support you in the process and guide you based on where you currently stand. Many traders have already gone through what you are experiencing. There are entire communities of traders who can lend you a hand on this journey and make trading a less solitary profession.

There are likely many more aspects to consider, but these are the ones I consider most important when facing a bad streak. Remember that this is a process that requires time, commitment, discipline, patience, and perseverance. The journey is worthwhile and will yield results, so don’t let a negative streak clip your wings and prevent you from pursuing your dreams.


And last but not least, use Swiset. Keep your trading journal automatically and access a suite of tools that will help you become a professional, consistent, and profitable trader.

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Sebastián Orozco

Head of Partnerships