I am a rule-based intraday and a passionate trainer trying to help budding traders to find their trading edge. Trained over 500+ traders in online and classroom programs. I believe a disciplined mindset and impeccable execution are the holy grail of trading.

I have been actively investing and trading in Indian markets since 2013. I use price action, market profile and options delta neutral concepts to analyze and opt for my intraday and swing trades.

I have published my book MASTERMIND OF DAY TRADING, which talks about how to succeed in day trading by adopting rule-based techniques of market profile, price action and money management.

Apart from trading and training, I also write blogs and actively answer the questions on trading and investing in my Quora profile.

  • Nataraj Malavade

Art of losing in trading you must know! - The hard fact of the Trading.

Have you ever wondered how professional traders make consistent returns in the long run?

Are you struggling to stick to trading rules and making losses in trading? If your mind says YES, then you are reading the right Article/Blog.

When we start to trade, we try to follow the professional's advice and hundreds of strategies. Though it’s a good thing to explore different strategies and rules that would make you profitable, changing a trading strategy as soon as it gives a few consecutive losses doesn’t lead you anywhere as a trader. In fact, I can certainly say that the SYSTEM HOPPING is the major reason for many traders to fall out from the markets eventually.

I am pretty sure that every trader goes through this phase, and it’s not surprising. It’s a natural tendency to react that way because we are all conditioned from childhood to think like a winner, and we always want to win in every venture. So as and when trading strategy enters the drawdown phase or losing phase we tend to look for another strategy that can generate 100% accurate results in each trade! This mindset leads us to system hopping at drawdown phases or when our strategy doesn't perform and a trader end losing his capital in this test and trail run. Taking a series of losses is very common in trading, but how effectively you handle this phase is what differentiates you from novice traders.

Let me explain to you a surprising stats about trading, There is a statistical study that correlates WINRATE and Possible consecutive losses. As per this study, there is a strong correlation between the accuracy of trading strategy and possible consecutive losses.

The above figure shows a correlation between the win rate of a system and possible consecutive losses. The results of this table are not just random numbers, but a statistical outcome of a Monte Carlo simulation. A random number of trades are simulated over 1000+ runs to arrive at these values. Using this data, we can easily expect seven consecutive losses even with the strategy of 80% accuracy. So the moral here is losses are inevitable and you must accept the risk involved in trading.

Final Thoughts:

It is not a question of HOW it is a question of WHEN. We wouldn’t know when we encounter consecutive losing phase, so it’s better to be prepared well in advance. When you are already prepared for the worst, then what remains is the BEST. A skilled trader who is prepared for this phase even before executing a strategy earns consistent results over a series of trades irrespective of drawdown phases or series of losses. Hope this Blog helped you, If you find this information useful then please consider to share with your trading buddies. And don't forget to hit the like button. See you in the next blog:) Happy Trading, Nataraj Malavade


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MASTERMIND OF DAY TRADING explains the rule-based ideas of market profile, price action, and various money management topics, especially for intraday trading. How to make Money with breakout trading is a part of price action lesson that discusses how to Make Money with trading the candlestick charts and trading the price action trends.