When you have completed a bad trade (violated your limit loss for a day) STOP TRADING.
Do not try to recoup your loss……………………
You broke your rule and your day is done.
Grant yourself a day off for multiples of the loss (i.e. maximum rule loss $200; actual loss $600 equals 3 days off).
A trader needs time to wipe the pain of the bad trade away from his/her memory.
Rule: Do not trade the next day when your limit loss rule is violated.
Defense, discipline and self control wins the day in trading.
In trading, you shouldn’t have to prove to yourself how tough you are by continuing to trade after breaking a rule.
You already proved you weren’t ready to trade on the day of the excessive loss.
About Me
- Mickey Hoffman
- Chicago, Illinois, United States
- Dr. Mickey Hoffman, a registered trader and broker with the National Futures Association, is a 30 year member of the Chicago Mercantile Exchange. In 1992, he founded the University of Trading for the sole purpose of introducing students to the career of futures trading. His extensive background in education and trading enables him to provide his students with an experience that is truly unique. Dr. Hoffman was a successful high school and college athlete, high school teacher, head coach, vice principal and summer school principal . His experience as a trader, broker, teacher, futures and options firm owner and author enable him to teach, counsel, and guide inexperienced students and experienced traders. Mickey enjoys working with new students as well as those who who are having a difficult time trading. Many have called Dr. Hoffman a "LIFE COACH"!
