IF you have a trading plan and IF you've been trading according to that plan and IF the number of and/or extent of losses is greater than accounted for in your plan, then, yes, you should stop. Your plan is out of synch with your market, and IF you are following that plan, then stop and re-evaluate your trading plan. Powering through the losses makes no sense if you are flying blind.
Stop Trading - Shut Down For the Day
- Thread starter ps0013
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IF you have a trading plan and IF you've been trading according to that plan and IF the number of and/or extent of losses is greater than accounted for in your plan, then, yes, you should stop. Your plan is out of synch with your market, and IF you are following that plan, then stop and re-evaluate your trading plan. Powering through the losses makes no sense if you are flying blind.
If you have a methodology with a positive expectancy, you should take your signals. You will have a number of losses in a row and a number of gainers in a row and no way of knowing which will be next. The only time I quit for the day is if I don't feel well, either physically or mentally or something came up that needs attending. Many days have started out in the hole and ended up nicely..
I know it was the expected answer, but the desire to be successful, makes the negative number an issue. Learning to take a daily loss within reason is my Achilles heel.
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I like that idea; why????? Because there are enough good trend days/average trend days; so stay out of sideways slop= chop+ side ways slop=chop. As far as ''catching up '' ,markets seldom work that way,as Tomorten hinted.I dont know if my remarks will help you daytrade, but that can work in swingTrading/position trading.
Another elitetrader called that kind of trend ''barbed wire range......
'' LOL-ouch''Yes but one's methodology should either have filters against range chop or strategies to trade them.%%
I like that idea; why????? Because there are enough good trend days/average trend days; so stay out of sideways slop= chop+ side ways slop=chop. As far as ''catching up '' ,markets seldom work that way,as Tomorten hinted.I dont know if my remarks will help you daytrade, but that can work in swingTrading/position trading.
Another elitetrader called that kind of trend ''barbed wire range......
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Sideways range chop & slop is the only kind of intra-day market behavior that allows my trading systems to function properly. That's the way my systems are programed.
My systems perform poorly on days that gap up from the opening and never look back, which reflects most days behavior since the last quarter of 2017 to present.
The only way around this problem for me is to change my ETF to higher volatility ETF's.
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Or trade thru them;
but if it happens close to entry- i may get out, depending , because it could be a meaningful trend change. Its not a big problem
A lot of people say it's good to walk away from the screen at certain times. Probably when the emotions have overpowered the intellect, or your brain just needs a rest. This is more of a qualitative than quantitative stop.
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I HATE to quit;
but when my eyes get tired, like LATE in the nite; i quit reading or study in a NY speedy second.I seldom even trade after hours, even though i have