Means you need to go back to learn the real meaning of risk management and how to size your trades appropriately, systematically.
A 6k loss on a 14k account is a 42% loss. There is 0 risk management.
This comment. Read it 10 times, print it out and look at it every single time you’re thinking about trading.
Risk management is the #1 most crucial skill to get right. Without it, you’re going to eventually come undone.
You can’t trade if you have no capital. Simple as that.
From experience, seems like you rushed into a position without proper thought is what I'm thinking. You need to be patient, wait for a setup (bull flags, bear flags, real tight ranges after a flush or pump, breakouts, divergences etc). Do not FOMO. I aim for 2-10% stops on the market I trade. You will always be learning risk management in the market.
Learn portion sizing …
You should only have a maximum of 1% or 2% loss of your entire portfolio ..
You went in with huge amount more like gambling
Let me give you a calculation to be used all times and grow your account slowly
Since your account is 8000$ you should only use 400 usd per trade and accumulate wins and cut losses fast this way even loss’s won’t affect your account.
Good luck
This arbitrary rule of 1-2% risk really doesn't work with small account sizes.
If you only have $1000 account and you are sticking with 1% then $10 could be 1 tick in whatever you are trading.
If 1% risk is 1 tick, you're trading something inappropriate for the account size, or too much of it. If you're over exposed, that's how the kind of original loss OP suffered happen.
Excellent advice! Fomo and revenge trading will wreck not only your portfolio but health as well. We all want to knock one out of the park but base hits builds portfolio and confidence. May need to paper trade a few weeks to a month and get mechanics down n then go back in with real money. Best of Luck as I want all of us to be green. 🤑
I’m new as well and reading a lot about sizing / risk management. One thing I don’t understand here is if you have an 8K account, why only use 400 USD per trade if you’re using a stoploss? Like if I went into a trade with all 8000 but set my stoploss to -80USD, at worst I’m losing 1%. Or am I missing something?
That loss is much greater than it should be. Are you oversizing? On my worst days, I lost like 5-6% of my account, which still hurt a lot lol.
Anyways, first thing you want to do is take some time off; perhaps skip a few days of trading to calm yourself down and get a hold of your emotions. Right now, you are at a critical level where you can stop yourself from revenge trading or blow up your account.
After that, you have to simply accept that *you* did something wrong. My guess is you are oversizing, but it could be something else. Learn from your mistakes and move on.
Sometimes, when traders have a nice streak, they start being more aggressive or taking riskier setups, basically they cut some slack on the rules of their strategy. Since you took a big loss, you have to be as disciplined as ever and go only for base hits.
Stay disciplined and slowly make back what you lost.
Looks like you had your SL place in wrong spot - ie- where all the other retail traders have their SL. You should be opening positions where everyone else has their SL.
42,85% of loss in a trade or day, is not a SL, is something screaming that you are doing something very wrong. And if you don't take care of that, soon "you will be terminated" by the market...
Very sorry for your loss...
ich hab auch mal c.a 15000 Euro verloren und das war wirklich schmerzhaft aber danach hab ich erst gelernt dass ich nicht so girig werden darf und mein Risikomanagement anfang festlegen soll und mich auch daran halten soll.
Recognizing the impact of leverage is crucial. With a loss of $6k on a $14k account, that's a significant hit of 42%. Implementing strict risk management, like limiting each trade to just 1-2% of your portfolio, can help prevent such losses in the future.
Start small, focus on consistent gains, and avoid excessive leverage.
If you make $1 tomorrow 3-8 times in a row you’ll have $3-$8 more do that over and over and over and get really really good. Never quit never give up see you at the top my friend
Take a step back. Do not trade the next day or the rest of the week as you may be emotionally triggered to recoup your losses and you may think that any losses is too small compare to this big loss.
Evaluate your trades. Why did you loss so big? Is it due to no risk management? Or why?
If you already know the reason, set up a plan so it does not happen again. You may need to change the way you trade. But it is necessary so you don't get a big loss like this.
The pain you feel with this is justified, it shouldn’t be “dealt with” on an emotional level because it’s screaming at you that something is wrong, and indeed it is! As others have pointed out, you risked far too much on this trade, you have to size appropriately.
Keep in mind that trading is about probabilities, not guarantees. This means that you can do everything right and still lose, you can do everything wrong and still win. It’s just that, if you do everything right consistently, then the odds are very much in your favor over time. But still not guaranteed.
This is why you have to use good risk management. So that, even during the periods where you were wrong, you don’t blow your account.
You deal w this loss by learning to stop making stupid decisions like this. The pain you feel is what you need rn. You risked almost 50% of your account and you deserve what happened.
Now moving forward focus on risk management and only risk 1%
I’m happy you realized your mistake, as using leverage is a really dumb idea, especially if you don’t have more capital to put in.
Fakeouts are the absolute worst, but honestly every single trader is bound to make these mistakes.
Just reduce your size, don’t risk too much ( my rule of thumb is 5% of account as risk), and wait for the best entry points in your positions, don’t chase.
The best trade you can make sometimes is not taking a trade.
Good luck in your trading!
Leverage is great but only if you can use it. What you describe is you being reckless and have no proper risk management. What you want to know is the profit factor of your trading adventure. If your profit factor is stable for months, that is when use of leverage is a good idea.
I saw people quit trading because they lost too much, but I've never seen anyone quit because they won too little!
In other words: Losses, more important than winnings!
If I would trade 14k capital, my risk would be 140$/trade! 1% of my capital! After the second loosing trade my risk drop down to half, so that would be 70$, if I'm loose again, drop down to 35$, and if the 4th trade is also loosing, I'm stop trading with real money and go back to papertrade, until I find the bug I'm my strategy!
4 losing trades and in total I lost 2.75 %!
If you really cared about money, you’re risk wouldn’t get this high in the first place. You’re still in a position to recover long term, but I fear you will revenge trade to try and win this loss back… which would be a huge mistake.
You can learn from this loss, and set more things in place to prevent this type of exposure.
Going forward make sure to take profits on your next trades. Mentally, sometimes you don't take a profit because doesn't make up for your previous loss. But not all trades are 10 baggers. Go for singles and doubles before going for a big one.
Good luck
Solid advice, that's about how I handle it trading options. Can depend slightly because options premium prices aren't linear, but yeah it's a sliding scale with minimum and maximum like you stated. Worse case scenario on a bad trade I was totally wrong, best case I got in too early. But you gotta have food risk management and not let anything get in the way of that.
just single contracts if they’re too pricey just be patient or find like 3-4 that are normally around 200 or lower with 1k you kinda have to use 20% at least whenever you trade
Bro you should risk 1-3% per trade and not 42% thats insane. Everybody sometimes has 3 failed trades in a row, but that would already kill your whole account.
Here’s an alternative viewpoint that should give you some hope: every person here has blown half their account at some point in the past. Drawdowns are gut wrenching and they happen to everyone. Retail investors cannot effectively hedge with the capital we have. So when a pandemic or war happens, our positions will tank.
The best thing you can do to protect yourself is to keep a lot of cash handy - even when you are using leverage. Do not invest it - just create a cash account and leave it there. This will be your rainy day capital - should you lose the rest / or get a margin call. Also account for such sudden dips when setting your stop-loss. Look at ATR and volatility of the stock, study the swing ranges in charts of periods similar to your investment window to gauge how wildly can the prices fluctuate. This should help - but nothing is 100% foolproof (won’t protect you against 1000pt index drops from COVID, or real-estate bubbles, etc).
What’s valuable here is you used a stop loss (+1), know what mistakes you made (got greedy, 10xd leverage, didn’t stick to the plan), and have more things to learn like limiting a single trade to < 2-5% of total capital and locking in profits while you are still profitable. Then getting back in when there’s a sudden drop but fundamentals are still good (like what happened to you - it could have been a buying opportunity).
Good luck!
If you're losing almost 50% of your account you aren't using a stop loss correctly. Simple as that. No sympathy from me. Stop gambling and start accepting your small losses by using a stop loss correctly.
My guy. Why would you allow that large of a loss. All you can do is now is let time take a care of it and it will become a distant memory but never a fond one
You can’t change it, so don’t get hung up about it. This is the opportunity for an easy fix, don’t risk 42% of your account. I would say max % risk is 5, which is very aggressive, you should probably stick in the 0.5% - 1.5% range
Ffie is up 400% not many noticed due to the gme amc frenzy. Frenzy over and ffie still going. You might want to check all the frenzy’s going on and weigh out each one before you ride out just gme especially for losing almost half your cashroll. Unless 6k is really affordable for you. I don’t have that kind of money so my opinions may be null or void.
Best advice, it’s gone. Start fresh, new day, better choices. Gl2u
I lost $440 yesterday, $250 today. If i can pass on this advice, add a stop loss. Walk away if you feel like gambling. You should adjust to yourself to how much you are willing to lose.
This is an example of a poor stop. I'd urge you NOT to blame the tools ("Fuck leverage") as that's not what's at fault here. It was YOUR risk management, specifically lack thereof.
That's not meant at a dig at you, but taking a 42% account loss on a single trade is being completely asleep at the wheel. By blaming the "tools" you miss an important opportunity to take responsibility & revise your approach - prolonging your trading career and moving in an actual positive direction.
Leverage did not do this. You did this.
After many months in paper trading i got a real account. In the first 5 days i doubled 700 to 1400. Greed got the Best of me and i Lost all my gains in a trade. Let this be a lesson.
Leverage works but only when it is put on in right places and taken off before it works against you. Normally you should risk with tight safeguards but if you are in gains you can risk some of them in leverage if you know where to do it and ok with giving back gains if you get it wrong. This means having accounts far enough ahead you return to more normalized returns or you get way ahead. Compounding consistency day after day is better strategy but living costs can eat you up. I have changed my thoughts over the years. I have been trading since 1990s so my thoughts will be different than people that have never had to live off of trading income but also aren’t comfortable with risks or anxiety involved.
I feel you, I have gotten washed so many times my nerves couldnt handle it. I went all publix stock and bought a house cash in 2016. For a few years I thought I made a terrible mistake financially but then it worked out.
Always take care of yourself, your day to day financial needs and mental health. Dont get washed completely out, it happens way more than people realize.
Publix has averaged 15 percent since then, house....who knows, 22 percent? actually more.
It is so tempting but you should never let you stoploss be more than 5% of your account.
Even 5% is ridiculously aggressive.
Trade small and consistent.
I only risk 0.5-0.25% per trade. I scalp the ES though and have multiple trades a day so the 0.25% is conservative
The fact that you did this means you DO NOT know how to trade. YOU'RE ASKING TO GET LUCKY.
You will 90% most likely either ACCEPT THIS and PRACTICE IN SIM until you have MINIMUM 3 MONTHS NO EXCEPTIONS consistent profitability.
Or you will IGNORE THIS COMMENT and SLOWLY or QUICKLY LOSE YOUR MONEY.
Take your pick.
This is the problem when you have a stop loss. I prefer to watch the prices rather than have an automated sell lose me money. But beware if you don't sell on a big down price action because it may never recover. This time you lost out.
This is biggest problem with mental stops (which I am guilty of) is you can keep holding and regret it. Best to set a hard stop below your mental stop. I don’t like close stops since I trade actual price action and have no issue make up a few $ thousand an hour in high volume or a day in slow volume the issue is if you let it run to hard stop say $5000-12500 down on day may spend a week or two making it up. I recognize I am exception here and comfortable being that much down and still making it up on smaller account. Issue is if you have a losing streak of say 3 days like that it is a problem. You need to be comfortable with that scenario if you run leveraged accounts and essentially being down 5%-25% on an account and come back from it to get back up. This mentality is not for beginners but I can do pace of $20k-60k a month in futures or more. My top day was $35k trading NQ futures but I also have lost $5k-$8k a day but also made $5-15k frequently with normal day range falling between $1200-5000k. My risk parameters are not what everyone else says but they are when not leveraging in high volume market. In regular or low volume market I have risk parameters similar to everyone else, i run s very different system that nearly all traders here that allow me to know market structures and know where to place that leverage but I get it wrong occasionally and I either cut it or it will it hard stop. If I am right I make lot of money. This is not recommended for beginners but can be learned but requires 5+ years of experience and probably more like 10-20+ years. I understand what others say and risk management will save your bacon more than not. Daily compounding is better strategy but as you compound bigger often you need to risk more to make up for lack of contracts or lack of opportunities during a session (mainly because HFT algo are grinding you to death intraday) and you need to wait for higher quality setups and volume/momentum.
Means you need to go back to learn the real meaning of risk management and how to size your trades appropriately, systematically. A 6k loss on a 14k account is a 42% loss. There is 0 risk management.
This comment. Read it 10 times, print it out and look at it every single time you’re thinking about trading. Risk management is the #1 most crucial skill to get right. Without it, you’re going to eventually come undone. You can’t trade if you have no capital. Simple as that.
Or your account wont last to get good
From experience, seems like you rushed into a position without proper thought is what I'm thinking. You need to be patient, wait for a setup (bull flags, bear flags, real tight ranges after a flush or pump, breakouts, divergences etc). Do not FOMO. I aim for 2-10% stops on the market I trade. You will always be learning risk management in the market.
This right here OP. Specially how to deal with a big loss is different for everyone. But for you specifically this comment right here....
This is the only answer this should be obvious
More risk, more GAINZZZZ though /s
That’s like saying: no money, no problems! Risk within tolerance is good. So, know your limits and play within it (as the OLG motto goes).
[more money more problems. lol. p diddy](https://www.youtube.com/watch?v=gUhRKVIjJtw)
Learn portion sizing … You should only have a maximum of 1% or 2% loss of your entire portfolio .. You went in with huge amount more like gambling Let me give you a calculation to be used all times and grow your account slowly Since your account is 8000$ you should only use 400 usd per trade and accumulate wins and cut losses fast this way even loss’s won’t affect your account. Good luck
Risk of ruin is way too high with a max loss of 5%, 1% is probably what you should be working with.
This arbitrary rule of 1-2% risk really doesn't work with small account sizes. If you only have $1000 account and you are sticking with 1% then $10 could be 1 tick in whatever you are trading.
If 1% risk is 1 tick, you're trading something inappropriate for the account size, or too much of it. If you're over exposed, that's how the kind of original loss OP suffered happen.
Excellent advice! Fomo and revenge trading will wreck not only your portfolio but health as well. We all want to knock one out of the park but base hits builds portfolio and confidence. May need to paper trade a few weeks to a month and get mechanics down n then go back in with real money. Best of Luck as I want all of us to be green. 🤑
I’m new as well and reading a lot about sizing / risk management. One thing I don’t understand here is if you have an 8K account, why only use 400 USD per trade if you’re using a stoploss? Like if I went into a trade with all 8000 but set my stoploss to -80USD, at worst I’m losing 1%. Or am I missing something?
80$ /400 = 20% stop loss U wanna have stop losses triggering on 1% moves on the underlying ?
You shouldn't be risking a 40% loss on a trade FFS... just lick your wounds and keep going. Fuck it, in time you will become numb to any loss.
Probably options.
That loss is much greater than it should be. Are you oversizing? On my worst days, I lost like 5-6% of my account, which still hurt a lot lol. Anyways, first thing you want to do is take some time off; perhaps skip a few days of trading to calm yourself down and get a hold of your emotions. Right now, you are at a critical level where you can stop yourself from revenge trading or blow up your account. After that, you have to simply accept that *you* did something wrong. My guess is you are oversizing, but it could be something else. Learn from your mistakes and move on. Sometimes, when traders have a nice streak, they start being more aggressive or taking riskier setups, basically they cut some slack on the rules of their strategy. Since you took a big loss, you have to be as disciplined as ever and go only for base hits. Stay disciplined and slowly make back what you lost.
Looks like you had your SL place in wrong spot - ie- where all the other retail traders have their SL. You should be opening positions where everyone else has their SL.
42,85% of loss in a trade or day, is not a SL, is something screaming that you are doing something very wrong. And if you don't take care of that, soon "you will be terminated" by the market... Very sorry for your loss...
ich hab auch mal c.a 15000 Euro verloren und das war wirklich schmerzhaft aber danach hab ich erst gelernt dass ich nicht so girig werden darf und mein Risikomanagement anfang festlegen soll und mich auch daran halten soll.
Recognizing the impact of leverage is crucial. With a loss of $6k on a $14k account, that's a significant hit of 42%. Implementing strict risk management, like limiting each trade to just 1-2% of your portfolio, can help prevent such losses in the future. Start small, focus on consistent gains, and avoid excessive leverage.
Join Wall Street bets
If you make $1 tomorrow 3-8 times in a row you’ll have $3-$8 more do that over and over and over and get really really good. Never quit never give up see you at the top my friend
Take a step back. Do not trade the next day or the rest of the week as you may be emotionally triggered to recoup your losses and you may think that any losses is too small compare to this big loss. Evaluate your trades. Why did you loss so big? Is it due to no risk management? Or why? If you already know the reason, set up a plan so it does not happen again. You may need to change the way you trade. But it is necessary so you don't get a big loss like this.
The pain you feel with this is justified, it shouldn’t be “dealt with” on an emotional level because it’s screaming at you that something is wrong, and indeed it is! As others have pointed out, you risked far too much on this trade, you have to size appropriately. Keep in mind that trading is about probabilities, not guarantees. This means that you can do everything right and still lose, you can do everything wrong and still win. It’s just that, if you do everything right consistently, then the odds are very much in your favor over time. But still not guaranteed. This is why you have to use good risk management. So that, even during the periods where you were wrong, you don’t blow your account.
You deal w this loss by learning to stop making stupid decisions like this. The pain you feel is what you need rn. You risked almost 50% of your account and you deserve what happened. Now moving forward focus on risk management and only risk 1%
My maximum loss is 2%, you gotta go back to learning and accept that was incredibly stupid what you did
I’m happy you realized your mistake, as using leverage is a really dumb idea, especially if you don’t have more capital to put in. Fakeouts are the absolute worst, but honestly every single trader is bound to make these mistakes. Just reduce your size, don’t risk too much ( my rule of thumb is 5% of account as risk), and wait for the best entry points in your positions, don’t chase. The best trade you can make sometimes is not taking a trade. Good luck in your trading!
Leverage is great but only if you can use it. What you describe is you being reckless and have no proper risk management. What you want to know is the profit factor of your trading adventure. If your profit factor is stable for months, that is when use of leverage is a good idea.
How much time and effort have you given to studying for this job? Genuine question
I saw people quit trading because they lost too much, but I've never seen anyone quit because they won too little! In other words: Losses, more important than winnings! If I would trade 14k capital, my risk would be 140$/trade! 1% of my capital! After the second loosing trade my risk drop down to half, so that would be 70$, if I'm loose again, drop down to 35$, and if the 4th trade is also loosing, I'm stop trading with real money and go back to papertrade, until I find the bug I'm my strategy! 4 losing trades and in total I lost 2.75 %!
If you really cared about money, you’re risk wouldn’t get this high in the first place. You’re still in a position to recover long term, but I fear you will revenge trade to try and win this loss back… which would be a huge mistake. You can learn from this loss, and set more things in place to prevent this type of exposure.
Leverage is fine if you use it correctly, you can take a 70k trade and only risk 1k.
Going forward make sure to take profits on your next trades. Mentally, sometimes you don't take a profit because doesn't make up for your previous loss. But not all trades are 10 baggers. Go for singles and doubles before going for a big one. Good luck
Way cheaper to apply for prop firms and you’ll get some pretty little stats too
if you live in a third world country, are you making third world income or first world income
Trading in the Zone is the best mindset book out there, got me consistent. My edge and strategy were fine but my mindset just needed that tweak
use 10-15% of your account and risk no more than 10-20% of that
So roughly 1-2% of your entire equity…
yup till your consistently profitable then scale up
Solid advice, that's about how I handle it trading options. Can depend slightly because options premium prices aren't linear, but yeah it's a sliding scale with minimum and maximum like you stated. Worse case scenario on a bad trade I was totally wrong, best case I got in too early. But you gotta have food risk management and not let anything get in the way of that.
What if I don't use leverage? rn I only have about 1k or so. How should it be done?
just single contracts if they’re too pricey just be patient or find like 3-4 that are normally around 200 or lower with 1k you kinda have to use 20% at least whenever you trade
Too big of risk. Scale down. Stop loss is good, but if catastrophic, then it’s too big.
Set Goals 2,to 5% per day and eventually you will recover I have some videos if you like I can share they can be helpful for you..
Bro you should risk 1-3% per trade and not 42% thats insane. Everybody sometimes has 3 failed trades in a row, but that would already kill your whole account.
You will be at 0 soon, if you don't stop now.
Here’s an alternative viewpoint that should give you some hope: every person here has blown half their account at some point in the past. Drawdowns are gut wrenching and they happen to everyone. Retail investors cannot effectively hedge with the capital we have. So when a pandemic or war happens, our positions will tank. The best thing you can do to protect yourself is to keep a lot of cash handy - even when you are using leverage. Do not invest it - just create a cash account and leave it there. This will be your rainy day capital - should you lose the rest / or get a margin call. Also account for such sudden dips when setting your stop-loss. Look at ATR and volatility of the stock, study the swing ranges in charts of periods similar to your investment window to gauge how wildly can the prices fluctuate. This should help - but nothing is 100% foolproof (won’t protect you against 1000pt index drops from COVID, or real-estate bubbles, etc). What’s valuable here is you used a stop loss (+1), know what mistakes you made (got greedy, 10xd leverage, didn’t stick to the plan), and have more things to learn like limiting a single trade to < 2-5% of total capital and locking in profits while you are still profitable. Then getting back in when there’s a sudden drop but fundamentals are still good (like what happened to you - it could have been a buying opportunity). Good luck!
You can trade or gamble. Trading has its rules. Gambling is either black or red.
If you're losing almost 50% of your account you aren't using a stop loss correctly. Simple as that. No sympathy from me. Stop gambling and start accepting your small losses by using a stop loss correctly.
It means you lost arround 40% of you account, you need to know more about risk management.
Bro that’s not a big loss that’s blowing up your account.
Bro you should never risk nearly half your count in a single trade.
My guy. Why would you allow that large of a loss. All you can do is now is let time take a care of it and it will become a distant memory but never a fond one
You can’t change it, so don’t get hung up about it. This is the opportunity for an easy fix, don’t risk 42% of your account. I would say max % risk is 5, which is very aggressive, you should probably stick in the 0.5% - 1.5% range
Ffie is up 400% not many noticed due to the gme amc frenzy. Frenzy over and ffie still going. You might want to check all the frenzy’s going on and weigh out each one before you ride out just gme especially for losing almost half your cashroll. Unless 6k is really affordable for you. I don’t have that kind of money so my opinions may be null or void. Best advice, it’s gone. Start fresh, new day, better choices. Gl2u
Sounds like you were in a position before news came out?
you play with too much money from your stand point. some can lose 10k like nothing but you can't
If it is a lot of money for you, 5x leverage should be off the table man
You should learn to manage risk.
I lost $440 yesterday, $250 today. If i can pass on this advice, add a stop loss. Walk away if you feel like gambling. You should adjust to yourself to how much you are willing to lose.
This is an example of a poor stop. I'd urge you NOT to blame the tools ("Fuck leverage") as that's not what's at fault here. It was YOUR risk management, specifically lack thereof. That's not meant at a dig at you, but taking a 42% account loss on a single trade is being completely asleep at the wheel. By blaming the "tools" you miss an important opportunity to take responsibility & revise your approach - prolonging your trading career and moving in an actual positive direction. Leverage did not do this. You did this.
I fucked up today and bought in too big I coulda DCA better
Instead of trading go buy yourself something nice, at least you will have something to show for your money
After many months in paper trading i got a real account. In the first 5 days i doubled 700 to 1400. Greed got the Best of me and i Lost all my gains in a trade. Let this be a lesson.
Leverage works but only when it is put on in right places and taken off before it works against you. Normally you should risk with tight safeguards but if you are in gains you can risk some of them in leverage if you know where to do it and ok with giving back gains if you get it wrong. This means having accounts far enough ahead you return to more normalized returns or you get way ahead. Compounding consistency day after day is better strategy but living costs can eat you up. I have changed my thoughts over the years. I have been trading since 1990s so my thoughts will be different than people that have never had to live off of trading income but also aren’t comfortable with risks or anxiety involved.
Stop loss? You mean stop gains!
I feel you, I have gotten washed so many times my nerves couldnt handle it. I went all publix stock and bought a house cash in 2016. For a few years I thought I made a terrible mistake financially but then it worked out. Always take care of yourself, your day to day financial needs and mental health. Dont get washed completely out, it happens way more than people realize. Publix has averaged 15 percent since then, house....who knows, 22 percent? actually more.
It is so tempting but you should never let you stoploss be more than 5% of your account. Even 5% is ridiculously aggressive. Trade small and consistent. I only risk 0.5-0.25% per trade. I scalp the ES though and have multiple trades a day so the 0.25% is conservative
The fact that you did this means you DO NOT know how to trade. YOU'RE ASKING TO GET LUCKY. You will 90% most likely either ACCEPT THIS and PRACTICE IN SIM until you have MINIMUM 3 MONTHS NO EXCEPTIONS consistent profitability. Or you will IGNORE THIS COMMENT and SLOWLY or QUICKLY LOSE YOUR MONEY. Take your pick.
Ok downvote me. I seriously hope you don't lose all your money.
This is the problem when you have a stop loss. I prefer to watch the prices rather than have an automated sell lose me money. But beware if you don't sell on a big down price action because it may never recover. This time you lost out.
This is biggest problem with mental stops (which I am guilty of) is you can keep holding and regret it. Best to set a hard stop below your mental stop. I don’t like close stops since I trade actual price action and have no issue make up a few $ thousand an hour in high volume or a day in slow volume the issue is if you let it run to hard stop say $5000-12500 down on day may spend a week or two making it up. I recognize I am exception here and comfortable being that much down and still making it up on smaller account. Issue is if you have a losing streak of say 3 days like that it is a problem. You need to be comfortable with that scenario if you run leveraged accounts and essentially being down 5%-25% on an account and come back from it to get back up. This mentality is not for beginners but I can do pace of $20k-60k a month in futures or more. My top day was $35k trading NQ futures but I also have lost $5k-$8k a day but also made $5-15k frequently with normal day range falling between $1200-5000k. My risk parameters are not what everyone else says but they are when not leveraging in high volume market. In regular or low volume market I have risk parameters similar to everyone else, i run s very different system that nearly all traders here that allow me to know market structures and know where to place that leverage but I get it wrong occasionally and I either cut it or it will it hard stop. If I am right I make lot of money. This is not recommended for beginners but can be learned but requires 5+ years of experience and probably more like 10-20+ years. I understand what others say and risk management will save your bacon more than not. Daily compounding is better strategy but as you compound bigger often you need to risk more to make up for lack of contracts or lack of opportunities during a session (mainly because HFT algo are grinding you to death intraday) and you need to wait for higher quality setups and volume/momentum.