Daily loss limit

[Turveyd]

your honesty is your truth and that is exactly what happens to every new or even seasoned day trader. we never make 100 plus points but we will hold onto a loser of 100 points and that is the entire problem and why many should just use time as an exit something that tkes advantage of randomenss in the mkt say every 5 mintues i exit either at profit or loss. and still us a get out price stop of course so you dont end up losing 100 points in 5 minutes but this will keep you on the winning side longer it helped me a long time ago

I kinda do time, but sometimes the trend is still valid and 10mins down the line it jumps up 20pts.

I have Code that runs the SL and moves and stops me moving it much, although it's got a min distance so I can move it further away, but it'll snap to 6pts away ( NQ ), but I can keep moving it in small increments.

But what generally happens in, it goes against me, hits SL then I get back long 4pts higher than the SL and repeat 5x's at 8pts per time so -40pts and it's only dropped 20pts LOL

Do this crap less and less, but still get tired, stupid, distracted emotional days.

A distracted trader is a bankrupt trader!!

 

[KCalhoun]

I found it's useful to put the brakes on using "progressive downscaling", eg if trade 1 at 100 shares stops out, trade 2 is 70 shares etc

Also 3 strikes rule per stock/etf daily, eg 3 stops in a row limit

On the flip side, when in the money I often trade more positions, including last hour

 

[Millionaire]

Today, if your Chop and get on the wrong side and keep giving it room, will ofcourse slap you hard sooner or later, it's easy to hold for -100pts, but never see myself hold for a +30pts let along +100.

Let it ride.
You cant make 100 pts unless you let it ride.
The mentality has to be 100pts or the stop loss or the market close, which ever comes first.

Even better, stop loss or market close, which ever comes first. Let it ride to the market close or even till next day if you can bear to hold overnight.

All easier said than done!!

 

[Turveyd]

Let it ride.
You cant make 100 pts unless you let it ride.
The mentality has to be 100pts or the stop loss or the market close, which ever comes first.

Even better, stop loss or market close, which ever comes first. Let it ride to the market close or even till next day if you can bear to hold overnight.

All easier said than done!!

I keep falling for trying that, get to +20 or +30 then reverse sharp and hit the SL again and again and again.

I just daytrade near scalp, can't / won't hold over night, I accept the first stall and be happy, when I don't do that, I suddenly get a row of losers.

 

[Millionaire]

I keep falling for trying that, get to +20 or +30 then reverse sharp and hit the SL again and again and again.

I just daytrade near scalp, can't / won't hold over night, I accept the first stall and be happy, when I don't do that, I suddenly get a row of losers.

Yes, i sometimes get 15 losers in row, my win rate is only 35%. But you have to let the winners ride.

 

[Turveyd]

Yes, i sometimes get 15 losers in row, my win rate is only 35%. But you have to let the winners ride.

I can't do that, I go NUTS, I've realised, but I keep going back to doing that, I just end up not wanting to lose and taking massive losers.

64% I think this week win rate!!

 

[trader1974]

The ideal would be to add the winners for example buying 5 contracts, then 3 and then 1.
(But for that you need a good trend, something that does not happen many times in the indexes)
But we usually do just the opposite by adding the losers, we buy 1, then 3, and then 5.
Then the price does not go in the desired direction, we do not admit the error and inevitably the account explodes.
Thats the big problem.

 

[Overnight]

The ideal would be to add the winners for example buying 5 contracts, then 3 and then 1.
(But for that you need a good trend, something that does not happen many times in the indexes)
But we usually do just the opposite by adding the losers, we buy 1, then 3, and then 5.
Then the price does not go in the desired direction, we do not admit the error and inevitably the account explodes.

Doesn't work that way in the real world.

Because if you buy 5 and it goes the wrong way? Whoops?!?

 

[trader1974]

It does not matter the number of contracts.
The trade must have the maximum probability of success.
Its not like that, you must jump the stop.
There is no other way.
The problem is that institutions accumulate at various levels.
The difficult thing is to see at what level the price will decide to take off.
This is not so easy.

 

[Mysteron]

Sometimes you can win for several days but finally a day comes where you lose everything with a losing trade.
It is necessary to keep in mind a daily loss limit and not operate until the next day.
How do you calculate the daily loss limit?

Losing everything in a single losing trade should never happen under normal circumstances.

Surely before placing a trade, the maximum loss permitted per trade and stop placement will determine the trade size.

I always use a % daily loss limit which is obviously larger than a trade % loss. Trade size is determined by % trade loss with trade size reduced to keep potential loss within % daily loss, so that the daily loss limit should not be hit.