When facing consecutive losses, instead of trying to break even, you should focus on this.

When you face consecutive losses and feel impatient, you should stay out of the market.

This is the most dangerous state in trading. When you make incorrect judgments in trading and orders hit stop-loss, good risk management ensures that losses are always limited, controllable, and certainly not fatal.

But once you incur losses that lead to impatience, or even losing your rationality, it becomes very easy to overestimate opportunities, underestimate risks, increase your position size, and engage in revenge trading. At this point, it is better to stay out of the market, collect your thoughts, and then re-enter.

So set a standard for yourself to stay out of the market after a series of losses; this standard should be conservative, for example, if you make three consecutive wrong trades, then stay out, because at this point you are still rational. If you make too many mistakes and lose your rationality, it will be hard to stop, and in the end, you will definitely incur significant losses.

However, during these days of staying out, just 'toughing it out' to calm your emotions is not enough. There’s a small technique to quickly stabilize your mindset that allows for reflection and avoids spiraling into anxiety — do you know what it is?