When to Stop Trading After Losses

Trade smaller (like 0.25% or 0.5% of your capital) and take all your signals...stop trading when you think your system is not working anymore (probably after 2k trades)

 

guowei58,

Thank you so much for the response. I like the X% of capital risk management approach.

 

Most days I trade bell to bell and unless we have news pending, e.g. Beige book, Fed meeting notes, Fed rate decision, Presidential election, I take each and every set up.

 

Don't ever chase losses trying to make your money back. It's psychologically and financially detrimental. In poker it's referred to as 'full tilt.' You just need to step back and re-group, clear your mind, stay disciplined and get back on the horse when you're ready... you'll know when that is.

 

Thank you Gaslight Capital, good comment. Taking them all helps with regret.

 

Thank you GuerrillaTrading

 

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Good points.
Another way to do it/cut back when you lose short term trading.
And keep in mind most lose money daytrading/except market makers/specialists.[NOT saying anyone should short term trade or buy + hold, even though most money is made in markets that latter way.]
OF course if one has a real low hit rate/ maybe no need to cut back.
Common sense may apply ALSO.
I COULD BE super bearish on SPY/VOO,[down SEPT,oct] but im not=4th quarter seasonals+ 88% of UP January=good up year...……………………………………………………………………………………………………...,