Daily loss limit in relation to profit target

[Sheen]

A question for all the day-traders/scalpers:
1. what is your daily loss limit in relation to your daily proft target?
2. Does any of you use a limit on the number of trades you can make a day, rather than a loss limit expressed in ticks/currency?

Perhaps a combination of these two methods would be the best solution. What do you think?

 

[numbertea]

I agree that a combination is good. Generally I lose the spread on each full trade so I try to limit my trades to 5 a day. My system gives losses that are probably considered high by most standards but they are always lower than expected gains and I consider profit to loss during a rolling week. I've been down 20 points once over 3 days and that felt uncomfortable but perserverence is part of the game. I was still positive at the end of 5 days.

Risk to reward to me is part of your overall trading plan. As long as you can stay on the right side over time the trading is a success.

Cheers