2% max on any one trade, at least for a short term time frame trader....or even just 1% until you prove to yourself you win more than you lose. It goes without saying, that the wider the stop, the less chance you have of being stopped out, but you also drastically reduce your rr.
Alright I've got another play that was a cluster. Really struggling lately, first arrow is entry, 2nd arrow is where stop loss got tripped. As you can see, I didn't set it too tight, set it at that previous low of the wick, maintained discipline at least and stuck to my stop, but in the process managed to perfectly buy the high and sell the low today. Yay!
Where can i learn about trading clusters? Got any links? https://www.elitetrader.com/et/thre...solid-trading-plan.340340/page-4#post-5031706
I don't understand why to buy the high then sell the low usually trader get profit if buy at low then sells at high. but this reversion.
LOL. Easymon and anyone else, just one more rookie question on this, and yes I know this is laughably rhetorical, but if the amount of the risk on a reasonable stop loss is too high, I just have to size down my trades huh? I've been trying to play catch up last couple trades to make up for those couple blunders I referred to, so I tried to maintain that 50% account rule, but then the right stop loss for it is a pretty large loss. Size down and be more patient?
My 2 cents worth. Shortcuts work as well in trading as anywhere else. lol Now, why not Generate some stats on the one or two setups you trade most. The numbers in sufficient quantity, generated by consistent procedure and followed to the letter, ...will deliver numbers that reflect the probability of positive outcome of the process if followed. Past results are no guarantee of future performance. ymmv not fdic insured may cause bleary vision.
For recent trades that you took, paper traded, got set up for or looked at seriously, look back at the setups. How many stops did you set 1) enough, 2)too tight, or 3)wayy to big. Numbers.