Lot management is also solid
When funds increase, you want to raise your lot size; that psychology invites ruin
That natural judgment sweeps away the profits you built up in an instant.
As trading goes smoothly and funds grow, many traders think the same: "Because funds increased, raise the lot." "If I gamble bigger, I can grow it faster."
This idea itself isn’t necessarily wrong. When funds grow, raising the lot size in proportion is correct from a money-management perspective. The problem is,that the way you raise it tends to be emotional.
If you raise the lot size in the midst of winning elation, you exceed risk-management rules and inflate the position. And when a losing streak hits with that inflated lot, you lose funds faster than you increased them.
The moment you’re winning is the most dangerous
It might be surprising, but the trader is most likely to suffer the greatest losses not when they are losing, butwhen they are winning.
Continued winning leads to overconfidence. A sense of invulnerability arises, like "I understand the market" or "I can win whatever I try now." When you raise the lot in this mental state, you take oversized positions that ignore the rules.
And the market will always reverse. A winning streak will end someday. If you raise the lot size with a sense of invincibility and then a losing streak comes, the profits you've slowly built up are blown away in an instant.The carelessness during winning creates the greatest losses.
① Your winning streak increases funds
② You become overconfident and raise the lot beyond the rules
③ The entries become more frequent with weak justification like "I can win now"
④ The market reverses and you start losing
⑤ With the inflated lot, you lose more than you gained
The arrogance after a win undoes everything.