Playing safe, it that's a thing :)

[justinbastian]

@cortney302 In case you’re new and don’t have a track record, you can base your daily stop on the losing trades in a row, or it can be a percentage loss. You can use either of these two or both.

 

[senumouv]

Also I would add that in case the closed or open position losses exceed the dollar amount, it’s better you close all the trades and stop trading for the day.

 

[radex78]

Choosing broker indeed become essential step to avoid unsafe broker, but sometimes safe broker they do not accept US client, maybe different regulation is the main reason.

 

[shriekpurser]

A strategy that I use, but only if you’re an experienced trader is to use the dollar amount of your average profitable day over a 30 day rolling period as your daily stop-loss.

 

[senumouv]

Also I would add that in case the closed or open position losses exceed the dollar amount, it’s better you close all the trades and stop trading for the day.

 

[Henrique]

Yes, playing safe is always recommended...for example using a SL

And using a broker that has negative balance protection, isn’t it?

 

[Henrique]

Please don’t go for no commission brokers. They are not safe.

Because of spreads ?

 

[shriekpurser]

A strategy that I use, but only if you’re an experienced trader is to use the dollar amount of your average profitable day over a 30 day rolling period as your daily stop-loss.

 

[justinbastian]

Try the 3% rule as your maximum loss for the day. You can reduce this amount if you wish but just try to stick around the 3%.

There’s also a 1% risk rule for day trading which directly focuses on risk management. This basically allows anyone to prevent losses of about 1% on a single trade.

 

[markteshorn]

Also I would add that in case the closed or open position losses exceed the dollar amount, it’s better you close all the trades and stop trading for the day.

As a day trader, I can surely vouch for that. I mean it is better to risk 1% than go as high as 4 or 5% and I’m less of a risk taker so this works okay for me. Currently I’m working on some new strategies for exotic pair trading. I'm trying to stick to brokers that offer such pairs so I'm experimenting with with swissquote, fxview and pepperstone for now. I just figured that USD/SEK and USD/BRL move more than 400 pips so there is actually quite some scope there.