Day Trading Stop Losses with the Camarilla {b} Equation

When to run if your day trading position goes wrong

Unavoidably, there will be occassions when the Camarilla {b} Equation, good though it is, gets it wrong, whether you are emini day trading or trading some stock or other. It is for this reason that the Equation suggests stop loss positions for your day trading. These suggestions are usually fairly tight, for the simple reason that if the market turns and hits them, it will usually run the WRONG way just as fast as we hoped it would run the right way. Therefore, take the loss at the stop position and lick your wounds. There will always be another day to day trade..

This point can't be stressed enough:- YOU WILL GO BUST IF YOU DO NOT LEARN TO TAKE SMALL EARLY LOSSES DURING TRADING RATHER THAN LETTING YOUR LOSS INCREASE IN THE VAGUE HOPE THAT THE MARKET MIGHT 'TURN ROUND'.

The Camarilla {b} Equation is quite clear, statistically if the market runs the other way, it will be unlikely to come back any time soon (although, as part of 'Sods Law', it will be these occassions you the day trader remember!). Never 'hope' it will come back your way, As Keynes said, 'The market can remain irrational far longer than you can remain solvent'. Good day traders don't 'hope'. They trade.