What Is The Traders Wall? And How to Break It?

One of the many common hurdles traders go through when getting better at trading is the psychology of dealing with loss. To many this is probably the biggest challenge traders face when trying to be consistently profitable in the market.  While many traders can deal with one loss they hit a particular barrier when dealing with multiple losses. This is what I refer to as the Traders Wall as it literally can destroy a potential trader from growing, however like anything there is a way to beat this wall down. In fact, there is a way to completely smash it down and never look at it again.

traders wall

What Is the Trading Wall? And The Common Cycle of Traders Hitting the Wall.. 

The best way of describing the wall is the endurance and weakness traders get mentally when dealing with 2 to 3 losses in a row. To someone that understands probability this is no deal and keeping to money management will always get you past this challenge, however to some others this is there mental nightmare.

Stage one is accepting one loss, stage two at a second loss is looking at the strategy in a negative way even though there may be nothing wrong with the strategy and stage three, losing three trades in a row or more is the dangerous stage is which despair commonly sets in for some traders. They go from positive to negative expectancy within moments and in fact many start taking trades that do not fit there strategy after that and then the impeding stampede of losses increases.

Does this sound familiar?

If so, you are not alone, in fact nearly all traders go through this hurdle on there way to being professional and here is where I will lay down the facts in order to challenge this mental ordeal and how to break the cycle.

6 Ways to Beat the Trading Wall

  1. Making sure your strategy is good and abides by the three main rules of trading: proven effective, aligns with good risk to reward and is also price action driven. One such example of this is The Engulfing Trader Training Series.
  2. Number two is always use money management, only risk 2% per signal unless you are a highly experienced trader that has been consistently profitable for long periods of time. Even then, do not risk much more and there is a big reason for this. You see, 2% is a low number that we as traders can deal with, even if we get three losses in a row which is inevitable to happen every now and then. Thus 2% is something most of us will not sweat over or have sleepless nights over. If you are not sleeping well due to your trades, then I am talking to you pal. Use money management 🙂
  3. Accepting Probability.. Seriously except that maths will eventually give a bout of 2, 3 or even 4 possible losses in a row. Do not react to this when it happens, instead remember trading is a process and losing some trades while it does hurt is part of that process. Just like we all love winning streaks, it is inevitable that we all will be wrong sometimes so seriously just deal with it.
  4. Another factor is aligning all your trade signals with good risk to reward thus meaning when you are right, which I am sure is the majority of the time if you are using a good strategy then you know that your winners will easily cover your losses. A good example is by looking at a couple of my recent trades as an example. One recently I lost a position 1:1 and the other trade I got a 3:1  as a winner. Meaning I made 3 times the risk on the second position. Now because I was using a good strategy and It aligned with good risk to reward it meant even though I was wrong on one trade, the other easily covered its loss, plus made a hefty profit as well. The point is, we cannot win all our trades, however we can make sure that the trades we do win are allowed to run and lock in as much profit as possible. Thus giving us a better gain overall even when we have a few losses here and then. Now let’s look at this example again, imagine I lost 3 trades in a row and kept following my rules and strategy and then I got a 3 to 1 would I then of lost money.? If you answered no, you are right, in fact I broke even. I did not lose anything even when this challenged the traders psychological wall head on. The truth is we all get losses, but like all losing streaks they end, heck, we do not complain when we get winning streaks do we..?
  5. When you feel the emotions kicking in always walk away, trading and emotions do not mix. You know your strategy, stick to the process and let it look after you. As long as your strategy is good, why are you doubting it..? Remember like I mentioned before, there is nothing wrong with the strategy, it is you that is reacting. Remember, the strategy is proven to work a certain amount of time.
  6. Always be willing to stop, look in the mirror and ask yourself questions about how you feel about the market? Are you having a positive expectancy of yourself and your strategy, this is important because the strategy is one thing, however if you have no belief in yourself you will make bad choices based off not what the strategy is suggesting. The common rule is Trading is 80% mental and 20% analysis and execution, this is something to remember and ponder… If this is you, seriously now is the time to stop and do lots of and lots of back testing. Now is the time to reinforce your belief in yourself and your strategy.

Overall the Wall is a real thing and a hurdle but you can get past it as discussed above, just involves thinking differently to the masses that trade in this industry.

Above – In the Video Above I go over the Trading Wall and how it can effect many of us as Traders.

Accepting The Wall

Also this is not something to hide from either, the reason being is there is not a single trader that has not hit this hurdle from time to time. ( Yes even the experienced traders as well. )This wall effects nearly all traders, heck I have not met a single trader other than the gambling traders that does not get effected by it. And the reason why gambling traders do not get effected by it as much is because they are used to losing money and do not see trading much more than a slot machine.

That is another important point as well, take your trading seriously, have  a journal, write down your experiences, write down your winners and how they effected you, write down how your losing trades effected you. Take note of things you learn from your winners as well as what you learn from your losing traders. Learn from yourself and see it like a business more so than just a thing you do. In a business there is always business expense, costs of rent, electricity etc. These should all be seen as spread or losses in the business. The point overall is to not to get too wrapped up in your losses, they always end and a winner is always around the corner. Even the best traders know this as well and it is partly what it means to be a professional trader.

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Your blog is one of the best educational tools I have seen and I’ve paid $$$ for much much less. I recommend The Engulfing Trader to FX traders. Keep up the excellent work.

  2. Timon, I can’t thank you enough…..this video couldn’t have come at a better time…..this has been one of my worst weeks trading and I was really starting to question whether or not I am cut out for this. I deeply appreciate your “can do” attitude and building up my confidence again…….All the best……….Sal

  3. Timon –
    This came a good time for me. Thanks again

  4. Gerard O'Born says:

    Hi Timon. My biggest problem, I’m finding, is patience. Waiting for the right trades, especially on the daily charts, can be excruciating. I guess it comes down to discipline in the long run. Do you have any suggestions for this?

  5. Hi Tim, it is great as always.thanks alot for concern and time.

  6. Hi Timon,

    All is relatively rosey in the garden this week but made a few losses last week however, when I look back 2 of the 3 trades were my fault, and not being stringent enough with the strategy, so I guess it is just a learning curve. I get more angry with myself when I make mistakes than when it is just not my day!


    • Hey Philip,
      Thanks for sharing. I like you’re comparison to gardening. Yeah, getting control of emotions is part of the process for sure, that way we can move onto the next better trade.
      Good to hear you had a good week this latest week.

  7. Hi Timon,
    So true, been there lose then start chasing to get back losses best advice step back take a look and start again, cheers again


  8. Thanks Timon for all your help. I really rely on your weekly reviews for my trading for added confluence that I am getting the zone right. very much appreciated

  9. Thanks Timon many traders out there need to watch this its really motivating.

  10. Hello Tim great web cast it so true about the the wall and the loosing of a few trades how it does affect traders but as you said move on and stick to the trading plan. Happy trading

  11. THIS A MUST WATCH VIDEO FOR EVERY TRADER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  12. Thanks my personal record is 13 losses in a row. now i am doing alot better thanks to your advice.

  13. Great video, Timon! Thanks for sharing your knowledge!

  14. Anthony Lane says:

    Thanks Timon. I really needed to hear that. Your advice is spot on. I’ve just hit the so called wall after having a 26/3 win loss ratio over a 2 week period.

    I compel everyone to heed Timon’s advice because he’s spot on with this.

    Thanks again Timon. Keep up the great advice you give to us. Its very much appreciated.

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