Knowing when to stop trading for the day after a series of losses is crucial for preserving both your capital and mental clarity. After consecutive losses, emotions like frustration, disappointment, or even desperation can cloud judgment, leading to impulsive decisions and revenge trading. This often results in even greater losses, creating a destructive cycle. Setting a predefined daily loss limit—such as 2-3% of your account—helps enforce discipline and prevents emotional trading. Walking away allows you to reset mentally, review mistakes objectively, and return with a clear strategy the next day. Successful traders understand that the market will always be there, but capital lost due to emotional trading is much harder to recover.