Im going to try and keep to a Â£300GBP (about $500) per day loss limit. This maybe increased or decreased in the future, but it seems to be a comfortable level to start off with. I have never really set a formal daily risk limit before and that is the point of this journal. The idea is if i am down Â£300 or more, then i close any/all open positions and stop trading for the day. No more new trades, regardless of how confident i might be on any other trade. Ideally a trader walks away from their screens to avoid temptation. The only problem for me is that i have automated systems i run on another trading account (daily risk limits are built into automated trading systems). I need to monitor these systems and that can mean knowing where the markets are trading. So i cant aways walk away and i can get very tempted to trade again. Lets see how the markets test my discipline!!