A losing streak is arithmetic, not a verdict

Risk · OnlyTrade trading school

At a 40% win rate, six losses in a row happen roughly once every twenty trades — not rarely, routinely. The mistake is not the streak; it is what people do in it: doubling size to «get it back», or abandoning a plan after the exact number of losses it was always going to produce. Decide in advance how large a drawdown makes you stop and review, write it down, and let arithmetic rather than mood tell you when you have hit it.

About this lesson

Written by the OnlyTrade team as a general explanation of a market mechanic. It uses no live market data.

Education, not investment advice. No method or result is guaranteed, and trading can lose money. Read the Risk Disclosure.

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