It’s a common belief in trading circles that losing streaks always follow winning streaks—almost like success is inevitably punished. This idea often stems from fear, superstition, or emotional experiences during drawdowns. But is it true?

In short: no—losing streaks don’t always follow winning streaks. What does follow winning streaks, however, is often a change in behaviour or mindset that leads to losses—not some natural law of balance.

Let’s unpack the reality behind this belief and how to manage both streaks effectively.

Markets Don’t Punish You for Winning

The markets are random in the short term and don’t have a memory. If your strategy has a 60% win rate, the outcome of the next trade is still based on probability—not what just happened.

What causes losses after a winning streak is often you, not the market.

Overconfidence Is the Real Culprit

After several wins, traders often:

• Increase position sizes impulsively
• Take lower-quality setups out of excitement
• Abandon risk rules, thinking they’ve “cracked it”
• Trade emotionally instead of systematically

This shift in behaviour, not the market itself, is what turns winning streaks into losing streaks.

The Same Happens in Reverse

Just like winning streaks don’t guarantee losses, losing streaks don’t guarantee more losses either—unless you:

• Get frustrated and overtrade
• Try to “make it back” in one trade
• Change your system mid-drawdown
• Abandon discipline

Managing your mental and emotional state is what truly determines what happens next.

Focus on Process, Not Streaks

The best traders don’t get excited during winning streaks or discouraged during losing ones. Instead, they:

• Stay committed to their plan
• Keep risk consistent
• Track performance objectively
• Journal behaviour—not just outcomes

They understand that streaks are normal—but temporary.

Conclusion: Streaks Are Statistics, Not Superstition

Losing streaks don’t always follow winning streaks—but poor behaviour often does. If you stay consistent, disciplined, and process-focused, you can maintain momentum and avoid emotional reversals.

To learn how to manage winning and losing streaks like a professional and stay grounded through all phases of your trading, explore our Trading Courses designed to build resilient, confident traders.