A few winning days in the demo account will raise your confidence levels and put you in a better mental space to take on the markets again with real money. After a losing streak, start small; don't jump right back to the same position size you were trading before. On the first day back, trade a small position size. A winning day with a small position size will help build confidence, and you can increase your position size the next day. If you have a losing day, losing on small position sizes is easier to handle than another losing day on full position sizes.
Get back into live trading at a slow pace. If you're feeling really beaten up, spend at least two to five days in simulation, and when you switch back to live trading, start small and increase position size when you have winning days. Even if you win a few days in a row, increase your position size incrementally, so it takes about a week to get back to your full position size. Some people try to rush back into live trading after a big loss, when they aren't ready. They end up losing more. Some traders repeat that cycle and never recover.
After you have traded bigger position sizes, it's annoying to start back with a small position size, but it's for the best. Bouncing back from a losing streak is about getting back to basics and implementing a strategy well, not actually about making money. Money comes from implementing a strategy well. Demo trading and trading small position sizes gets you refocused on what's important, so you can start building your confidence again. The money will come, naturally, without being forced.
Get back into live trading at a slow pace. If you're feeling really beaten up, spend at least two to five days in simulation, and when you switch back to live trading, start small and increase position size when you have winning days. Even if you win a few days in a row, increase your position size incrementally, so it takes about a week to get back to your full position size. Some people try to rush back into live trading after a big loss, when they aren't ready. They end up losing more. Some traders repeat that cycle and never recover.
After you have traded bigger position sizes, it's annoying to start back with a small position size, but it's for the best. Bouncing back from a losing streak is about getting back to basics and implementing a strategy well, not actually about making money. Money comes from implementing a strategy well. Demo trading and trading small position sizes gets you refocused on what's important, so you can start building your confidence again. The money will come, naturally, without being forced.
