Should You Reset Your Stop Loss or Stop Trading for the Day?

Let's face it, nobody takes a trade with the intention of eating a stop..but it happens and sometimes when things don't go your way, you can end up hitting your daily stop limit early on in the session.

This can leave you in a very vulnerable position if you do not have a plan of action and that's exactly what today's episode is going to focus on!

Whether you should stop trading for the day after hitting your daily drawdown limit or if you should reset and fight back.

The truth of the matter is that many traders have difficulty with this decision in real-time and not knowing when to walk away can lead to a downward spiral in performance and trading results.

Don't worry though because we've got you covered over here at TRADEPRO Academy! We've put together a two-step process for you to follow in order to ensure that if you are going to be resetting your daily stop, you're in the best position to do so and fight back!

You’ll walk away from this episode with a better understanding of how to manage your drawdown days like a professional trader so that you can protect your capital and live to fight another day!

In This Episode You Will Learn

How proprietary traders manage drawdown days   07:00
The three factors that risk managers consider when resetting daily loss limits 09:30
The two factors to consider when deciding whether to fight back or walk away on the session 16:45
Three mental check-in exercises you can use to objectively identify your mental state  19:20
Which market conditions present the best opportunity for you to bounce back  24:25

Some Things We Discuss

Accountability to your trading plan and being both the employee and the boss 13:35
When it makes more sense to walk away for the session with a loss 21:00
The bonus question to ask yourself before the final decision 32:48

Resources

Connect with our community online: Trade Pro Academy
Catch up with our earlier episodes: Mind Over Markets Podcast