Home > Lessons from the trading floor > day trading stop losses

day trading stop losses

When day trading for a living if you expect to have a long career you should always make risk management your first priority. As one of the partners of the fastest growing proprietary trading firms in NYC we get to speak to many would be professionals.

I say “would be” because in our eyes trading to pay your bills is very different than trading when you have a full time job and don’t need the profits to pay the bills. We interview many traders who come to Keystone Trading Group to negotiate a different deal than the one they currently have or maybe they are trading from home in a E Trade account and want more buying power. Either way it only takes about 3 minutes for Erik and I to know if we want to add that person to our team: Are they negotiating a big stop loss or are they seeking a permanent home and a reputable firm?

Remember this: amateurs look at potential profits first and professionals look at risk first. We always get traders who want to come in and negotiate a huge stop loss for the day. “I need to be able to lose this amount if I trade for you!” We say OK that sounds fine, can you show me a P&L of how much money you have earned over the last 6 months to the last 12 months? The answer is usually no believe it or not. Or they show us a P&L from 1999 (not kidding)

Keystone Trading Group is built on learning to trade well and managing risk. Earning a consistent living comes from trading well, not from being lucky once in a while. It is a business model that will help us last a long time. Give us a call if you want to a part of that long term success. (212) 594-8900


  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: