How To Stop Chasing Your Losses?

Want to be on the show? Send us a question, a voice note or a quick video to [email protected] How do you keep trusting your process when several trades in a row go against you, and every instinct tells you to win the money back? In Episode 11 of Markets and Mindsets, the team are joined by Luke, who has spent 13 years working closely with active traders and has experienced his own shift from short-term, instinctive trades towards a more structured approach built around the S&P 500, position sizing and risk management. Luke shares the emotional pull that follows a losing streak, even when the strategy and risk controls are behaving exactly as expected. The conversation explores why losses feel more powerful than gains, how fight-or-flight responses can trigger revenge trading, and why a good process can still produce a bad outcome. From reducing position size and creating clear trading rules to changing your physical environment, speaking to other traders and protecting your sleep, the episode offers practical ways to reset, avoid paralysis and make the next decision on its own merits. In this episode: - How a string of stopped-out trades can challenge confidence in a good process - Why losses often feel more painful than equivalent gains feel rewarding - Why anxiety can push traders towards overactivity and revenge trading - How reducing position size after a losing streak can limit emotional pressure - Why a morning routine and market plan can support slower, clearer thinking - How to leave yesterday’s result behind while still learning from it - The difference between a good process with a bad outcome and a genuinely bad process - Why trading can become isolating and how conversation creates useful challenge - Why position size and stop placement should reflect the market’s volatility - Why standardised position sizes can reduce inconsistent, emotional decisions Chapters: 00:00 – Introduction: Loss, Anxiety and the Revenge Trade 00:23 – Meet Luke: From Vibes-Based Trading to a Structured Process 02:45 – The Emotional Pull After a Losing Trade 04:23 – Why Losses Weigh More Heavily Than Gains 07:41 – Anxiety, Fight-or-Flight and Revenge Trading 08:54 – Building Rules for a Losing Streak 10:21 – Detachment: Leaving Yesterday Behind 13:23 – Good Process, Bad Outcome 22:41 – Position Sizing, Volatility and Stop Placement 28:41 – Resetting After a Run of Losses Enjoyed the episode? Subscribe to Markets and Mindsets for more conversations exploring the psychology behind better investing. If you enjoyed this episode, leave a rating or share it with someone looking to become a more thoughtful investor. Capital at risk. The value of investments can go down as well as up, and you may get back less than you originally invested. This podcast is for educational purposes only and should not be considered investment advice.