MisTKy
314 posts













Someone asked me how I handle big losses or sharp price drops. This are my 2 rules: First and most important: position sizing / staking discipline Before I enter any trade, I ask myself one simple question: Am I comfortable losing 100% of the money I’m putting into this position? If the answer is no try to I reduce size or I skip the trade. This mental habit removes (or at least massively reduces) the emotional shock when a trade goes against me. It’s much easier to accept a loss when you already decided before you clicked that the money was “already gone” the moment you risked it. This is also very helpful with drops as you are not so stressed about the drawdown. Second rule: know your “enough” When I take a loss that feels heavy, I stop for the day, or take a longer brake. I broke this rule exactly twice last year. Both times it cost me roughly 5x-10x the original loss by the end week. How I rebuild confidence after a serious hit ? Decrease position size Trade/bond with lower risk for a couple of days/weeks
















