Creating boundaries in trading is something that often gets overlooked, but it’s crucial for long-term success. It’s not just about managing risk with your capital, but also about managing your mental and emotional state. I think the idea of stepping away after hitting a 5% or 2% loss is a great way to prevent those emotional decisions that can lead to further losses. It’s easy to get caught up in the moment, trying to recover quickly, but walking away allows you to maintain clarity and avoid a downward spiral. Protecting your mindset is just as vital as protecting your trading account, and these kinds of rules can be the difference between a disciplined approach and a reckless one.
