- Change stop criteria based on time rather than price
- Adhere to a risk management calculator
- If using options, get ITM and more time on your contracts
- Increase targets for better R/R
Assume you have a swing trading strategy and realize that your losses are huge. Much bigger than your losses. Here’s how to fix it:
1. Change stop criteria
Putting your stop based on time rather than price can help you get out of trades before they get worse. Consider using a time-based stop loss as well as a price-based one
2. Use a Risk Management Calculator
While Pheemu doesn’t have one of these yet, you can do a simple calculation. Don’t risk more than 1-2% of your account per trade. This will keep losses smaller.
3. Changing your method of trading
If you’re trading options and losing, try switching to complex options strategies. You could also move to shares and be more strict with your account risk.
4. Increase your targets
If your losses are big, make your winners bigger. Set higher targets to increase that risk/reward and make those losses seem smaller.