{"id":16093,"date":"2011-12-22T10:46:10","date_gmt":"2011-12-22T15:46:10","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=16093"},"modified":"2011-12-22T10:46:10","modified_gmt":"2011-12-22T15:46:10","slug":"what-is-your-giveback-rule","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/what-is-your-giveback-rule","title":{"rendered":"What is your giveback rule?"},"content":{"rendered":"

Yesterday in a daily trading review a trainee wrote with disgust about giving back too much of his early profits.<\/p>\n

\n

\nI really hate what I did today… basically gave back 90% of my net on the day by trading like a jackass. It just started with one bad trade and snowballed into a few more, and before I knew it, I just quit for the day. It\u2019s a shame too, I thought I was trading really well with CIE and ORCL. Mid-day,I nailed that CIE reversal and I called out the 14.80 breakout on INCY and it seemed like I wasn\u2019t doing much wrong, then I made my worst trade with too much size (buying immediately into a pullback on INCY) and it just got worse from there.<\/span><\/div>\n<\/blockquote>\n

The rest of his review consisted of a lot of I am a \u00a0jacka$$ this and that. \u00a0He’s not and my response was:<\/p>\n

this is not an issue of you being a jacka$$<\/p>\n

this is you not having a giveback rule<\/p>\n

you were up $$$ (P$L numbers redacted for compliance reasons)<\/div>\n
lose $$$$<\/div>\n
STOP TRADING<\/div>\n
TIME OUT<\/div>\n
create a rule for yourself<\/div>\n<\/blockquote>\n

Steve earlier in the day told me about coaching an experienced trader to shut it down. \u00a0He was up nicely, lost some, lost some more. \u00a0Steve pinged the trader cautioning not to give back more. \u00a0The trader gave back more, and then a little more. \u00a0Steve personally went over and suggested to close it out for the day.<\/p>\n

Later I wrote this to our desk:<\/p>\n

Guys I am seeing the same issue and spotting the same prob on the desk. \u00a0If you have a positive open and you give back 30 percent shut down your trading\u00a0for the day or at least until after a long time out. \u00a0It is very common for HFs to shut it down for the month or week or quarter after such a give back. \u00a0Develop a giveback rule for yourself and send your personal rule to us.<\/p><\/blockquote>\n

One trainee responded:<\/p>\n

As a developing trader, I will not give back more than 50% of what I earned on the open. \u00a0In the event I breach the 50% rule, I will close my lightspeed account for the day and analyze what I did wrong. \u00a0As I increase share size, this rule will be reevaluated.<\/p><\/blockquote>\n

What is your giveback rule?<\/p>\n

Bella<\/p>\n

One Good Trade<\/a>
\n\"\"<\/a><\/p>\n

no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"

Yesterday in a daily trading review a trainee wrote with disgust about giving back too much of his early profits. I really hate what I did today… basically gave back 90% of my net on the day by trading like a jackass. It just started with one bad trade and snowballed into a few more, and before I knew it, … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[30,1828,1193,653,1354,1349],"class_list":["post-16093","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-prop-trading","tag-smbu","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"\nWhat is your giveback rule? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/what-is-your-giveback-rule\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is your giveback rule? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Yesterday in a daily trading review a trainee wrote with disgust about giving back too much of his early profits. 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