^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Great post Steve! From the "Best Virtue in Trading" thread......... ********************************************************************* 5Pillars Registered: May 2006 Posts: 1218 11-23-06 02:55 PM PERSISTENCE, PERSISTENCE, PERSISTENCE! Edit/Delete ⢠Quote ⢠Complain
Scalper007, I don't like the idea of someone getting cut off for the day. There were a few times when I was down in the am from a string of losing trades and the small losses piled up and I made it all back and by the end of the day it turned out to be a nice up day. Had I been "cut off" I would have never had the chance to come back. I agree your mentor should monitor why your losing money but dont cut someone off for the day its just pointless because you are still out of the money you lost, why not keep looking for good trades and play the probability game? You could miss out on some nice profitable trades.
To the Thread author.... http://www.albinoblacksheep.com/flash/stfu.php Has anyone here been in similar situation?
That is exactly what I have been arguing with my mentor for months. Unfortunately, he thinks that the loss limit some how protects me. It only does harm. I'll give you an example: Lets say my loss limit is 200. I get in a trade and I start losing 200 bucks right away. My brain says, get out immediately; but my mind says buy more and average into the losing trade because getting out now doesn't make any sense since I'm gonna get locked out for the rest of the day anyway. And so I buy more, stock goes further against me. And I end up losing double the loss limit. Where as, if I had a bigger loss limit like now, I'd immediately get out and move on. It does not take a rocket scientist to understand this psychological burden of the loss limit. Right now, I have a $500 loss limit and it seems like you have no loss limit and we're in the same firm and we both started with no deposit. So who makes the rules here? The managers or the mentors? A lot of things are shady here and I never get clear answers to anything. I had to literally beg these guys for months to slowly get my loss limit up to where it is now and I am happy with my current loss limit. But for the 1st 3 months, I wasted so many days by getting locked out and painfully watching all the moves which I could have participated in.