[SwingTradinJay]

I think the idea of a daily MAX loss-stop loss...

is to prevent a sort of burning-of-the-cash jumping into the fire behavior?

Because once your down, you're going to make bad trades, even the best do it, I've seen it happen to an awesome trader friend of mine...

It's all about understanding how YOUR own self will react to loss, and taking protective measures to trade another day. And in futures and FX, you must be careful and logical (while still taking defined risks).

There is a fine, fine line between gambling, and trading..
Folding early in texas hold em is a strategy I use often, and I also "fold" or stop out early in trading too, because the market is like a black hole if you're not careful!

[hedonQ]

The daily stop maybe designed to limit your capital commitment where the market might not be as fluid.
Of course, you need to know if this applies. Or maybe your trading skills for the day are not where they should
be to manage your profitable trades.

I always operate from two angles
1. my setups are profitable over time
2. preserve the capital.

There's some distribution of losing and winning trades. Approaching the daily stop loss, I can
cut the size in order to execute extra few more trades beating the loser/winner distribution.
This is a sort of defensive mode. It allows you to take that extra trade where you normally wouldn't if
your daily stop is hit. Even at the reduced size I can make up the losses with a one or two
good trades.

[ptcm88]

I have been having same problem. It's so hard to walk away when you're down.

result this week

mon: +$290
tues: +$220
Wed: +$820
Thur: +$60
Fri: guess what ? -$1,260

I was very sick about it. Could someone here with this kind of problem but later able to find solution to correctly modify his behavior tell us how to tackle this problem ?

many thanks in advance...

[MightyMouse]

You should only stop trading if you are making mistakes.
There are only 4 trading mistakes:
1 Getting in when you were not supposed to.
2. Getting out when you were not supposed to.
3. Staying in longer than you were supposed
4. not getting in when you were supposed to
It doesn't matter if you make or lose money when you commit one of the above 4.

Losses from trading are not mistakes; they are part of the game.

You shouldn't be thinking about your wins and losses when you are trading. If your set up appears, take it as if it were the first trade of the day. If you are affected by wins and losses, your mind is not yet where it should be to trade.

[Tams]

>It doesn't matter if you make or lose money when you commit one of the above 4.

not understand the above,
and the inability to discern the difference between lucky win from true win,
will eventually separate the wannabies from the long term survivors.

[TimRacette]

I agree with Hlm, as for daily targets I also have no set target. If the day is providing good setups then I trade them till they fail, if the day is slow I trade less. The month is usually filled with a handful of average days and a few great days.