How do you handle euphoria after a big win?

Euphoria is the under-discussed sibling of despair: it produces oversized positions, skipped checks and the confident trade that gives the win back. Managing the high is as important as managing the low.

How do you handle euphoria after a big win? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your protocol?

  • how you recognise euphoria in yourself
  • the rules that fire after big wins
  • the give-back that taught you the rule
How do you handle euphoria after a big win? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The position sizing guide keeps the post-win size honest.

Background: Position sizing: how to risk a fixed percentage per trade

How much you trade matters more than where you enter. A step-by-step method for sizing positions from your stop-loss and the amount you are willing to lose.

How do I calculate lot size from risk?

Divide the amount you are willing to lose by the stop distance in pips multiplied by the pip value per lot. For $50 risk, a 25-pip stop and $10 per pip per lot, that is 0.20 lots.

What is the 1% rule in trading?

A guideline to risk no more than 1% of the account on any single trade, so a losing streak doesn't cause a drawdown you can't recover from. It is a starting point, not a guarantee.

Read the full guide

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