How do you get back to a horse once you fell off from it? Let's say you are making a living trading and on average take in $1000 a day fairly consistently. Then on some of these days you have sudden draw downs. May be a loss of $4000 for the day. It seems that on that day, no matter what you do you just can't do it right. Everything you touch turned into crap instead of gold. So you swallow it hard and take the losses home. The following trading day, what do you do? 1) Shake off the previous day's experience. Treat it as if nothing had happened. It's just part of doing business. Trade exactly the same way following your methods which seem to work for you in the long run and bet exactly the same size? 2) Bet heavier to get back the lost ground. You lost big yesterday. But the market had shown you the real direction. You should correct the course. e.g. If you shorted and lost heavily yesterday, perhaps you should consider longing it with a higher wager to make it back quickly? 3) Be very cautious today. Reduce the bet size by half or 3/4. Slowly go at it. Your goal today is to not lose. Then you proceed to aiming for a $200/day the next day. And then $400/day the next day. Then back on your track to your regular goal?