“Everyone wants to win — until they realize how many losses it takes.” October has been one of the toughest months for me (and likely for some of you), especially when comparing LoD stops based sizing swing traders vs. % stops based sizing position traders. I’ve had 16 straight... losses — but each one was small, contained, and the streak was fully within the expected variance range of a 30% win rate. While it can be challenging for some of us, the key to navigating this, both mentally and emotionally, lies in accepting uncertainty through predefined risk management, where every trade has a clearly defined pain threshold. Your dollar-value tolerance should never trigger emotional reactions or push you off your intended plan. By acknowledging that losses are part of the process, we enter each trade with humility — assuming we may be wrong until proven right. The market must prove and continue to prove the validity of our thesis. Start small, and let your risk grow only as your consistency and performance justify it. I always advocate using a fixed % risk relative to your latest net realized equity. Don’t increase risk just because you’ve had a few good trades — risk should only expand when it’s truly earned from realized profitable performance. Avoid the illusion that everyone wins in trading. The real objective is not just to make gains, but to preserve them. True risk management goes far beyond setting stop losses — it means being proactive enough to cut size when the market proves you wrong. In the end, the trader who manages losses best will always outlast the rest. “The best loser is the long-term winner.” - Phantom of the Pitshow more

Jeff Sun, CFTe

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