Increasing position size after losses instead of reducing risk
Common Mistakes · Market Rush Help Center
Losses Should Lead to Smaller Risk, Not Bigger Trades
After a losing trade or a drawdown, some traders attempt to recover by increasing position size or taking lower-quality setups. This reaction is driven by emotion rather than process and is one of the fastest ways to fail an Evaluation or lose a Rewards Account.
Market Rush risk rules are designed to protect traders from this exact behaviour. Increasing size after losses magnifies drawdowns and increases the probability of hitting Max Daily Loss or overall drawdown limits.
Why This Behaviour Is So Risky
Losses reduce emotional stability. When position size is increased during this state, traders are more likely to enter impulsively, ignore stop losses, or continue trading even when market conditions are unfavourable.
How Disciplined Traders Respond to Losses
Consistent traders do the opposite. They reduce size after losses, trade less frequently, or stop for the day altogether. Protecting capital and mental clarity is far more important than recovering losses quickly.