Profit and Loss daily limit
|December 15th, 2014, 05:32 AM||#21 (permalink)|
Sydney, NSW, Australia
Futures Experience: Intermediate
Platform: NinjaTrader with Jigsaw DOM
Favorite Futures: CL, 6E, ES, Piano
Posts: 189 since Nov 2014
Thanks: 162 given, 184 received
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.
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