Daily loss limits
Risk & Psychology
The circuit breaker
Set a daily max loss (e.g., 3R). Hit it = done for the day, no exceptions. Tilt after losses is the single most expensive state in trading. The limit exists to outlaw it.
Check yourself
Daily loss limits exist because…
- Brokers demand them
- Losing streaks degrade judgment right when stakes feel highest correct
- Taxes
After three losses you are chemically not the same trader. The rule sends that person home.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.
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