Reply to thread

Message: <blockquote data-quote="luxmen" data-source="post: 23985002" data-attributes="member: 409399">The very last question you want to ask yourself is how much am I willing to lose each day? Again that is a function of personal preference, but my hard rule is never more than 1% of the account. So far, I have not come close to hitting that limit (mainly because my initial opening size is small) but if I ever do -- I will close all positions and stop trading for the day.A 1% equity stop on your account may not seem like a lot, but if your goal is to make 10 basis point per day than it is just right. In fact that is a very good rule of thumb to use. Take your daily goal target (assuming it is realistic of course) and multiply that by 10. Put a hard stop on your equity at that level and never, ever, question or doubt that move. Any loss that takes more than 10 days to recover is going to be a very difficult task to achieve. Don’t make trading any harder than it is.Know your losses ahead of time and you will set yourself up for the wins.</blockquote>

Top Bottom