Wednesday, August 8, 2007

When do you stop?

Today I'll be talking about the daily stop loss, since yesterday I had a strange day, I started it at up, then made another money, combined I made my profit for the day, which was roughly 150$, and then I started plunging down, and kept going all the way to my stop loss..

So here is what I realized yesterday, I should always start with my initial stop loss of the day (1.5% of capital), and once I'm up with profit, just move the -Daily stop loss- up, which means sometimes I can earn 100$ on a profitable day, or on days like monday when my method works well, I won't stop myself after earning 200$, but rather at 800$ profits, it's what they say "cut losers short, and let winners run" :) I always realized it on stocks, but now I starting to learn my lesson on my equity curve.

So many lessons to learn trading, let's hope I'll stop paying my tuition soon.

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