Hi Bella —<\/p>\n
I’ve been reading your book carefully and enjoying it very much.I live in Las Vegas; and would much rather trade stocks than play in the casinos.<\/p>\n
I’ve been an occasional end-of-day trader for over 10 years. Now, since last October, I’ve been endeavoring to teach myself how to day-trade. So far, I think your book is the best one that I’ve encountered on that subject.<\/p>\n
My question is this: On page 224, you speak of the “intraday loss limit.” That makes sense. But, I found it somewhat contracted by your discussion on page 101 concerning “Happy Prints” who was down $100,000 — but was encouraged by his manager to keep trading.<\/p>\n
Does this apparent discrepancy reflects the difference between a new and an experienced trader?<\/p>\n
This is the difference between Old School training (none \ud83d\ude42 ) and new school trader training. \u00a0Back in the day there was just a risk administrator who might come over if he felt you were down too much. \u00a0This can cause all sorts of problems as a successful trader does not want the risk guy to manage his trading. \u00a0What does the risk manager know about his present positions? \u00a0A trader knows best how to determine his risk with the positions he is trading generally. \u00a0Today our intraday loss limits are preset. \u00a0These are agreed to by the trader and our floor manager. \u00a0If an experienced trader hits their loss limit they can ask to be reset but this is very rare. <\/strong><\/p>\n From your recent blog, I get the impression that you expect a trader who reaches his intraday loss limit to remain at his trading desk and prepare for the next trading day. Do the concepts of “resilience” and the “intraday loss limit” contradict each other in any way?<\/p>\n