Don’t Gamify Your Trading

What happens when you get obsessed with a winning streak

Author

Charles Moretti
December 22, 2024 • Estimated Reading Time: 3 minutes

Twenty-six green trades in a row. Unbelievable. I’ve made it. I’m a trading genius. Millions are just around the corner. On to the next trade!

(10 minutes later)

Oh, it’s heading toward my stop loss. But this happens all the time. My setup is solid—it’ll recover.

(30 minutes later)

Damn, it’s way beyond the stop loss. Should I have exited earlier? Nah, I won’t stop now. Price moves up and down all the time. It’ll turn green soon.

(5 days later)

I’m down more than my last month’s profits. I don’t even care anymore. Taking the loss. This is hopeless…ngmi…

The Illusion of the Streak

If I had taken the stop loss, I’d probably have been green the next day, if not the same day. Instead, I let one bad trade eat through my hard-earned profits—all because of the illusion of preserving a winning streak.

Why? Because it feels amazing to say, “I haven’t had a red trade in weeks.” It’s so cool to never lose. But that superhero mindset will devastate you sooner or later.

In trading, your emotions are your biggest enemy. Trading isn’t just the opposite of a team sport—where every other market participant is trying to take your money—it’s also a battle with yourself. Your habits and thoughts will constantly try to sabotage you.

Why Gamifying Trading Is a Trap

Winning streaks feel satisfying, but they mean nothing if you lose all your capital. Gamifying trading—chasing streaks, trying to “win” every trade, or any other mind games—turns the focus away from what truly matters: risk management and consistency.

These emotions will push you to:

  • Hold onto losing trades longer than you should.

  • Ignore stop losses because you don’t want to admit defeat.

  • Overtrade to compensate for past losses or keep the streak alive.

This mindset can—and will—blow up your account.

Actionable Tips

Here’s how you can break free from the need-to-win mentality:

  1. Shift your focus to process, not results. Winning is a byproduct of following a solid trading plan. Stick to your plan, not your emotions.

  2. Set and respect stop losses. A stop loss isn’t a punishment; it’s protection. Since it protects your capital, you should actually treat is as a win, essential for long-term success.

  3. Focus on other performance metrics than win rate. Focus on metrics like risk-to-reward ratio, consistency, and overall account growth. A high win rate is meaningless if you’re losing big on bad trades.

  4. Take breaks to reset emotionally. If you’re feeling frustrated or obsessed with winning, step away. A clear mind is crucial for sound trading decisions.

In trading, it’s not about being perfect—it’s about being disciplined. Let go of the need to win, and you’ll find freedom to trade with clarity and confidence. Protect your capital first, and the profits will follow.