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Old 04-08-2009, 10:19 PM   #13
goo3
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Join Date: Dec 2003
Location: Van
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just what i know from reading.. some things you can try which you may already know:

1) limit your risk per trade (max amt losable) to NO MORE than 3% of your portfolio.. 1-2% is what you should aim for. Not as exciting but if your method is solid, this should be doable and you live to trade another day. You're not playing the odds when you have to chip your way back from a big loss.

2) Your exit strategy should already be defined when you send in your order - where or how to take profits (price target, underneath prior support, break of trendlines, etc) and, most importantly, where to set your loss (support/resistance, etc). And the thinking ends there. The rest is about executing the plan. It helps keep you even headed if you have problems with that.

And if your plan calls for > 2-3% max loss, maybe it's not a good plan? Try using less capital for that trade. Of course, never change your stop loss unless you're protecting profits you already have.

^ All theory, BTW.
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