1. Have a cap on winning trades. For example.. If I win 2 trades in a row i stop trading for the day. It ensures protecting earned profits.
2. Have a cap on loosing trades. For example. If I loose 2 trades in a row, I stop trading for the day. It ensures protecting capital.
3. Have a cap on number of trades in a day. Whether loss or profit close for the day. For example.....I trade a maximum of 3 per day. It ensures that you do not over trade.
4. Have daily profit target and losses. If any of them is reached, stop for the day. It ensures that your greed and fear are under control.
5. Finally have a weekly and monthly targets and stop loss levels. If your weekly or monthly targets are met, do not trade further for the week or month. Similarly if your weekly or monthly losses are incurred, do not trade further for the week or month. It ensures you get refreshed by attending other things of the life. After all, trading is a part of life but life is not trading alone.
2. Have a cap on loosing trades. For example. If I loose 2 trades in a row, I stop trading for the day. It ensures protecting capital.
3. Have a cap on number of trades in a day. Whether loss or profit close for the day. For example.....I trade a maximum of 3 per day. It ensures that you do not over trade.
4. Have daily profit target and losses. If any of them is reached, stop for the day. It ensures that your greed and fear are under control.
5. Finally have a weekly and monthly targets and stop loss levels. If your weekly or monthly targets are met, do not trade further for the week or month. Similarly if your weekly or monthly losses are incurred, do not trade further for the week or month. It ensures you get refreshed by attending other things of the life. After all, trading is a part of life but life is not trading alone.