STOPPING OUT FOR THE DAY

No matter how good a trader you are, there are days when nothing you do goes right! The key to risk management…is never to have a loss, on any trade or on any day, which is impossible to recover.

The pitfalls of ego!

Psychologically, it is the last thing you will feel like doing but this is exactly the time to stop before lethal catch up, double up trading starts. Just by walking away you will certainly save further enormous damage to your account and once you are out of the office, you will see the world more clearly and feel much better. Get familiar with the word discipline! Once again, it is having the discipline to do this, not just knowing what it is you should do, that makes a successful trader.

Put the facts into a simple truth…

The real value in trading is in properly interacting with the markets. The monetary results of each day are therefore only to evaluate if you did a good job in your analysis of and interaction with the markets. As long as you made what you thought were the best choices and learned from your mistakes, you had a typical day (no matter how much you made or lost).