Below is a typical example of consecutive losing stake:
- 1st Trade Tick Trade EURJPY = Loss
- 2nd Trade Tick Trade EURJPY = Loss
- 3rd Trade Minute Trade EURJPY = Loss
- 4th Trade Minute Trade GBPJPY = Loss
- 5th Trade Minute Trade GBPJPY = Win
When trader get losses, sometimes unconsciously they keep trading same instruments over and over again in order to return back the lost money.
- When 1st trade we lost with EURJPY, then it indicate price action of EURJPY is not correct to there is no point of making more 2 trades with same pair. Plus as JPY is not working well, so there is no point of trading similar currency GBPJPY.
- If under 5 minutes 4 trades is loser, there is no point to trade during that time considering the time is bad, retry 1 hour or more hour later.
Generally People do Martingale in such case, but that’s basically an account killer if your losing stake runs too long. That’s why taking break after 1-2 consecutive losses & trying different market in later time is the smartest thing to do.
Top 2 things that causes consecutive losses:
- Either Market is Wrong or Bad.
- Or Timing is Wrong or Bad.
So only solution is retrying at different price at different time.