What do you do to stop overtrading / manage trades? | Psychology and Money Management

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What do you do to stop overtrading / manage trades?

  #27 (permalink)

Sydney, Australia
Trading Experience: None
Platform: NinjaTrader
Favorite Futures: European Minis
Posts: 10 since Sep 2018
Thanks: 1 given, 14 received

I have this problem (everything falls apart after a loss) and also the problem of being up on the day, and then giving back my winners from over-trading.

So now I have daily loss and profit limits.

If I lose 10 ticks (I trade Euro Stoxx) I'm done for the day, period. If I make at least 5 ticks, I'm done for the day. Usually if I'm on a good trade it'll run for more than 5 ticks, but if it turns around & I have to get out for 5, I'm good.

I get that I could be walking away from a bigger day. But my theory is, if I can get consistent at making 5 ticks / day trading 1 or 2 contracts and be happy with that, I can make 5 ticks / day trading 100 contracts, which is big money.

This helps me avoid that hugely frustrating feeling of being up 10 ticks within half an hour of sitting down to trade, and then giving it all back and ending up in the red on the day. I f*cking hate that.

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