ST Da/Madan,
What is the longest series of losing trades that you have faced in day trading?
What is the longest number of continuous losing days that you have faced in day trading?
Wisp,
No experience in day-trading as such. I have done 5 months of daytrading last year to see what it is...then, it was taking a toll on me and fortunately, there was no need to do daytrading for me..Just fortunate that way !!
1. I can talk about losing streaks on swing trading. I easily get 8-10 losing streaks in a row (as my system is 38-40 pct winning system) 2-3 times in a year atleast..5-6 winning trades as well
2. I dont know about continuous losing days (as i dont daytrade) but time DD is very demoralizing.I have had 4-5 months of DD multiple times in the last 10 years before i see the peak. Knowing system's probability of winning and the average time the system dips into DD will help here. Am not referring to account drawdown..we are talking about time DD.
So, if one has a system which makes money every month - great. Keep doing what you are doing. But not everyone is fortunate or savvy enough to have that kind of system. If you are part of the latter crowd, just prepare yourself for your system's expected time DD(add 50% more time to it) so that your trading routine should not get disturbed.
All these things matter only when your trading account size is small (btw, account size is a subjective topic..needs differ for everyone). Once you get to a bigger size, these things will not matter as you would have set aside enough(or passive income) that can compensate for a couple of year of time DD as well. So, battle-cry is to cross that 1-1.5 cr as account size. On a side note, the higher the timeframe one trades, the less number of trades and more chances of a bigger time DD. Please be cognizant of that fact !!
Am pasting a link that talks about winning percentage anf losing streak chances over 10000 trades...This is statistics( based on random sequencing and Monte carlo simulation..i have 100% faith in math) and we are not above it. We will experience this over the long run.
http://prntscr.com/azaic3
Hope it helps !!