Daily Profit Goal and Stop Loss

[Shane Bowen 3]

If you had a profit target of either $500 or $1000 what would you risk on a given day to achieve that before you stop trading? On a given trade you like 2:1 or better but if you extrapolate to a day that means if you were down say $250 or $500 on your first trade(s) then would you stop?

 

I'm trying to balance ensuring that the losing days are not out sized but also don't want to eliminate the chances of getting back to even or better by stopping out for the day prematurely. i suppose it depends on your ratio of green days vs red days but any thoughts on this would be helpful to me and surely the group as well.

 

Thanks!

[Andrew Aziz 98]

Everyone has different max daily loss tolerance. It depend on your emotion and psychology to keep going. Remember never to break the 2% rule on any single trade. Also keep in mind the 6% rule means returning to simulator for 2 weeks. Here is a forum post where members discuss their daily max loss.