Does anyone know of a broker for options that has a daily loss limit as well as auto liquidation if your account balance falls below the daily loss limit? Also a broker who doesn't permit the loss limit to be changed until the next day. I recently gave back a month's worth of profits on a day where I was stressed over a lot going on in life. Thanks in advance.
You need better control and self awareness. That's like a casino gambler walking in and asking to look out for them so they don't get addicted. The reason you gave back a month's worth of profits in a day....is because you Wanted to. Don't act dumb and innocent. You entered that trade knowing the risks vs rewards, and decided to take it, gamble on it Be Bold, But cautious and wise. Because that's the only way you're going to survive in this life MoneeMonee
No one is flawless in discipline. I think everyone at some point has held a loser too long. Institutional traders have daily loss limits from what I've read. I don't see the downside to having one.
Good Evening monee, You trying to make money and be happy? Or you trying to make money and be sad? You do not need no damn daily loss limit. You the trader, not the damn broker. Why does a broker need to have daily loss limit on your trades? Click that damn chart and don't worry about losses. If you end the day with a big loss, good for you, you was trying to make money. Good work. You did good. You did awesome. Come back the next day and try to make more money. If you lose again, keep going. Just keep going, you will figure out how to stop losing. Daily loss limit is for losers. Trade until you tired or the market close everyday.
Aren't they being already being cautious and wise? OP identified a weak spot in their process/mentality by reviewing their past performance and is now looking to put a system/mechanism in place that will help them avoid this pitfall in the future.
Trading can be a complex, strange and funny thing. You're trying to maximize profit potential with the balance of safety. And that can be a wide, foggy, spectrum. Had that trade worked in his favor...he would be gloating and feeling like a hero genius right now I don't think he was being wise to put himself in a situation where he could lose a month's worth of profits in one trade. You have to craft your understanding and risks appropriately in trading so you can reasonably, realistically, win overall in the end. Trading is war, not a casual casino vacation trip. You have to strategize your resources in the artful battlefield landscape of time CamCam
I agree with what you are saying, but I don't see how having a daily loss limit negates any of it. Would you say that traders shouldn't use a stoploss with their broker for the same reasons? *genuinely asking* No one is saying what he did was wise. The wisdom comes from him acknowledging it and making plans so it doesn't happen again. OP could have brushed it off as a bad day in the market but they have acknowledged it was their actions that lead to the poor results.
My mind is turning into candy fantasy land marshmallows right now with all this back and forth hypothetical reality philosophical trading talk.... Just trade wisely and sense the greater wider picture happening and unfolding in your timeframe picture frame box. Understand all the elements, variables, pulses in play affecting its movement at any moment in time on both a micro and macro scale...so you loosely know what to expect, anticipate and seize. And if you Fuck up on your judgement call...bail out to minimize damage. Live to fight another day
Just my guess...You told your broker (in writing) you had a knowledge and a skill level (years) higher than maybe you should be at. Yes?? https://www.ibkrguides.com/kb/options-levels-1-4.htm#:~:text=What are the levels of,various levels are as follows: