How do you handle losing streaks? We all go through periods when we’re out of sync with the market. When I’m doing things correctly, I tend to expand my rate of involvement in the market. Conversely, when I start losing, I cut back my position size. The idea is to lose as little as possible while you’re in a losing streak. Once you take a big hit, you’re always on the defensive. In all the months I lost money, I always ended up trading small—sometimes trading as little as 1 percent of the account. When I get into a losing streak, I like to read a nonfiction book to learn something new. That
...more
