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When to Stop Trading, Money/Risk Management Rules


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When to Stop Trading, Money/Risk Management Rules

  #11 (permalink)
 
AllSeeker's Avatar
 AllSeeker 
Mumbai, India
Legendary Pratik_4Clover
 
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goodoboy View Post
Thank you LastDino,

One problem/challenging I am having is this:

If my first trade of the day is a win, of say 6 pts on ES, I hesitate on taking the next trade, I guess in fear of a loss and giving it back.

Perhaps I need to decide on a daily profit target for myself.

Maybe I will start a new thread with this issue.

Create a journal thread, jamrock is right you know, only you can know whats up with you and plan accordingly, that's why these plans are personal and you will have to iron issues out slowly.

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  #12 (permalink)
goodoboy
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LastDino View Post
Create a journal thread, jamrock is right you know, only you can know whats up with you and plan accordingly, that's why these plans are personal and you will have to iron issues out slowly.

Thank you LastDino,

I appreciate the help.

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  #13 (permalink)
Mozart2112
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You mentioned 'revenge trading'. That is a real thing which is also known as 'full tilt' in the world of poker. That nearly got me. I would also mention a good time to stop trading is if you start diverging from your Trading plan or begin to think you're smarter than the Market.

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  #14 (permalink)
 SidewalkAerobics 
Los Angels
 
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goodoboy View Post
Hello All ,

2. If account balance drops by 50% stop trading and re-evaluate myself or trading strategy.

Thank you kindly.

Great question! Everyone has a different risk tolerance. For me, I would want to re-evaluate my strategy long before a 50% loss.

If my system exceeds the largest drawdown of a 15 year backtest, then I need to stop trading and re-evaluate myself or trading strategy.

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Last Updated on October 12, 2020


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