Traders Laboratory - View Single Post - 10 Pips a Day to Wealth - guaranteed
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Old 05-17-2007, 12:29 PM
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Re: 10 Pips a Day to Wealth - guaranteed

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What stops would you use in your quest for 10 points a day? If a 10 point stop then what happens when you lose 3 and are -30 for the day? You now need +40 to pull it back. 2 more losses and you've wiped out a week's profits.
Stops are a fact of life for traders. If you get stopped out 3 times in a row in a day (or series of trades), you need to step back, stop trading, and evaluate your trading plan and setup.

That means checking to make sure your entries and exits were valid and per your plan - assuming the setup works and has a reasonable positive expectancy for you.

The one thing you don't want to do is "chasing your own tail", trying to make up lost profits by recklessly overtrading.

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