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MAXIMUM CONSECUTIVE LOSSES

How many consecutive losses have we incurred?

Published by The Retail Trader · JUL 31, 2026 · Risk Management

Maximum Consecutive Losses — How many consecutive losses have been incurred. This number tests your brain more than position size.

WHERE THIS FITS IN

This term comes under Risk Management, in the "NUMBERS OF PERFORMANCE" section. And those numbers which show what was actually achieved in a year's hard work:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Absolute Return
• CAGR
• XIRR
• Benchmark Comparison
• Alpha
• Risk-Adjusted Return
• Sharpe Ratio
• Largest Single Loss
• Average Holding Period
• Turnover Ratio

To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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