Knowing When To Stop

I don't use stop losses, at least not in jumpy markets like the greyhounds. All too frequently, the stop loss would fire when it was inappropriate for it to do so. I do however use a daily stop loss. Once I'm running at a certain loss for the day I'll stop. Accept the fact that I'm trading badly and not in the zone and quit. Better to take the loss on the chin than continue to muddle on only to risk further losses.

Today was one such day. Right from the off, I was in a mess, primarily because I had a lazy morning, slept until 10:50 and just launched myself into the fray before having breakfast and making sure I was fully awake.

Within four dog races this morning I was over £20 down. That doesn't seem much written down here, but given I'm normally happy making £1 per race, it is huge.

Although, my daily stop loss is £30, I decided to take a break there and then and try and get my head in gear and generally wake up. When I came back after 1 o'clock, I immediately lost another £5!

After lunch, I managed to halt the losses, though I wasn't making much headway in reducing them. Not until the 3:38 at Sunderland anyway where I picked up over £4. Easily my best trade of the day and much more like it.

Unfortunately, just as I was beginning to think I might be turning things around, I lost £17 in the very next race. £17! I still cannot believe I traded that race so badly. I misread the market, had a number of back bets taken and all the money on my side of the market disappeared as a huge and sustained drift occurred with no money available for me to trade out.

Daily stop loss reached and computer switched off. I honestly cannot remember trading the greyhounds so badly.

When you're not in the zone, it's important to recognize that and get out, before you only make matter worse. At least that's how I feel anyway. I'm sure others do things differently.

2 comments:

Ronnie2ticks said...

"When you're not in the zone, it's important to recognize that and get out, before you only make matter worse. At least that how I feel anyway. I'm sure others do things differently"

Your right, i have a stop loss of £20 for the day hit that and i am out for the rest of the day, everyone should have such a stop loss, stick with

Kokoooooooo said...

Absolutely agree with you and I salute you to have the discipline and strength to stop and get out until you lose much more. I wish i had your power.....well done. I admire you hugely. You will be very successful in the future, your money management are spot on!

Keep up the good work and good luck
Cheers,