How Do You Handle Three Consecutive Losses

When facing three consecutive losses, the safest approach is generally to stop for the day rather than forcing another trade, even if a setup appears to meet every rule. Emotional capital is often depleted after a losing streak, which sharply increases the risk of revenge trading and cognitive bias.

• Protect your daily limit: Prop firm evaluations strictly enforce daily drawdown limits. Stopping early prevents a bad session from turning into a blown account.

• Review execution: Check if the losses stemmed from market conditions or rule deviations.

How do the rest of you handle a three-loss streak? Do you step away immediately, or do you keep trading valid setups?