Profit and Loss daily limit

NexusFi · 2014-12-15T05:32:07-05:00

However if you don't limit your losses you may well end up out of the game. Those streaks of luck run both for the player and the dealer. You could if you had a prolonged string of losses on anything and be out of the game....however, as a long term trader myself, if I have chosen the stock properly, I would not have chosen a risky stock that is going to wallpaper in a hurry so losing up to 10 % on a given stock, while cause for concern, it is not necessary to bail out completely... After all it goes …

Discussion in Psychology and Money Management

Updated December 15, 2014

Profit and Loss daily limit

December 15th, 2014, 05:32 AM	#21 (permalink)
TickedOff Sydney, NSW, Australia Normal Wizard Experience: Intermediate Platform: NinjaTrader with Jigsaw DOM Trading: CL, 6E, ES, Piano Posts: 264 since Nov 2014 Thanks Given: 229 Thanks Received: 250	I do not like daily profit targets because they limit your upside, if you have a 1k target and you reach it in say the first hour of trading because its very volatile, then you think, ok I reached my target and you dont focus as much. Id rather trade when there is opportunity and stop when there isnt. I would also advise stopping if you go on tilt, because you are protecting capital that way. I like daily loss limits because they force you to reduce your size as you lose more, again it protects your account and you cant do stupid things like doubling down because taking that 1 big loss means you are not able to trade future good setups for the day.