[Hlm]

Not sure if this concept has been discussed already but here is a thought:

Treat your daily stop no different than you treat your trading stop. It is kind of like trading off your PnL. Trail the stop as the day moves on and your PnL goes up (hopefully).

For Example...

When I start trading I have a daily stop that is determined by both how much I can make in a day and the type of market condition I expect. In general I do not like to lose more than I can make back the next day. As the day moves on I will move my stop up depending on what the market condition actually is and how well I am doing. During lunch times I usually have another stop above my daily stop. This allows me room to play the lunchtime (if I want to) without getting whipped out for the day in slow volume times. For example, many of you in the chat room saw me hit my lunchtime stop a few days ago. As for targets, I can’t really say I have any (personal choice).

Of course this may work for some of you and not for others. It also depends on how well you are at trailing stops. However, I do feel that it is VERY important to have a daily stop that you can make up quickly. Every trader has a bad day. Yes, some days you would have made it all back and more if you kept trading. But I assure you, there are many more where you would have been wiped out.