…Okay traders We had a fantastic discussion on the zoom this morning while we were watching…E S. Okay traders We had a fantastic discussion on the zoom this morning while we were watching. E S just chop around. And we talked about, what is your daily loss? How many trades in a row would you allow yourself to lose before you were done? And how does that relate to leverage? So I gave everyone. This information that now I’m gonna…relay and share to you. There’s three scenarios here…First thing is what is our daily loss? I just used 300 bucks. I asked the room how many trades in a row? Could you lose before you went you know what I’m done I’m out. I’m either drawing my levels wrong or the price action isn’t honoring the levels I just need to be done. The number was three. So if you’re willing to lose 300 bucks on the day, You’re in your first three trades were all losers. It’s a hundred dollars a trade. Right. Simple. What’s your stop-loss. Let’s say you had a rigid six point stop loss. We have all the information we need to now know how much leverage each trade. Should have. And it’s three MES. Contracts. Because one MES has $5. Per 0.6 points is a $30 loss. So if you traded three contracts at a $30 loss that’s $90. That’s just under the a hundred bucks. So you could do three trades at three MES contracts. And you would be within your daily loss limit and you gave yourself three opportunities. Two. Get going…Let’s look at scenario two. If you wanted to give yourself a little more lead way you could do five trades. If you went to five trades, each trade would now have to be two. MES contracts…At six points cause it’s at $30 So $30 times two. Is what 60 bucks…Times five trades There’s your 300. Here’s my favorite though. I use a scaling…$300 loss, three trades. I don’t expect to lose. I have a high probability system I use. I don’t expect a loss So my first trade I want to give myself. The luxury. Of trading higher leverage. But it does not mean I will take all five contracts on that first trade. But I know that I can. Because what I’m willing to do is lose half. 300 bucks I’m willing to lose half. So five contracts times 30 bucks. Number over here. Five contracts times 30 bucks is $150. Okay So the first trade I’m willing to lose one 50. If I lose. I need to trade smaller…Okay One reason I like the scaling system. When you lose you should be trading smaller. So now I have to drop to three MES. I have to stick with three MES Let’s say the first trade full loss, second trade I’m perfect…I have to say. With three MES until I make back the one 50 I lost. Once I make that back I can go back to full leverage. Let’s say first strains a loss second trades a loss third trade You’re like all right. Let’s tighten up here. I can only do two MES and I have to stick with two MES. Until I make back this 90 bucks, then I can go to three. I have to stick with this three until I make back this one 50. Once I make that back then I can go full leverage. I want to make back my losses by trading smaller, which is the exact opposite of what most retail traders do they make a loss they do the same leverage or they go bigger because I just want to get back to even. No we just want to get back to trading smaller. Trading even smaller. With more precision entries. This is a much better system. I believe you will become a much better trader. If you use this sort of scaling method. Okay. So I expect. To not lose my trade. So I’m gonna allow myself big leverage but I’m also going to allow myself three trades before I have to tap out and say I am done for the day. Okay, you could also do this with a weekly number What’s the amount of that I’d be willing to lose in a week, which by the way lends itself very nice to funded trading programs. Because let’s say you had a $3,000 loss you could do. Well I might divide that out amongst three days or five days. And then you simply do the math for each day. Exactly As I showed you here using a scaling down. Approach…Okay. So there’s some ideas for you of how to take your daily loss. Take your stop loss. And do some math. Okay, thanks for listening. Just chop around. And we talked about what is your daily loss? How many trades in a row would you allow yourself to lose before you were done? And how does that relate to leverage? So I gave everyone this information that now I’m going to. Relay and share to you. There’s three scenarios here…First thing is what is our daily loss? I just use 300 bucks. I asked the room How many trades in a row could you lose before you went You know what I’m done I’m out. I’m either drawing my levels wrong or the price action isn’t honoring the levels I just need to be done. The number was three. So if you’re willing to lose 300 bucks on the day, You’re in your first three trades were all losers. It’s a hundred dollars a trade, right? Simple. What’s your stop loss. Let’s say you had a rigid six point stop loss. We have all the information we need to now know how much leverage each trade. Should have. And it’s three MES. Contracts. Because one MES has $5. Per point. Six points is a $30 loss. So if you traded three contracts at a $30 loss that’s $90. That’s just under the a hundred bucks. So you could do three trades at three MES contracts. And you would be within your daily loss limit and you gave yourself three opportunities. Two. Get going…Let’s look at scenario two. If you wanted to give yourself a little more lead way you could do five trades. If you went to five trades, each trade would now have to be two. MES contracts. At six points cause it’s at $30 So $30 times two. Is what 60 bucks…Times five trades There’s your 300. Here’s my favorite though. I use a scaling…$300 loss. three trades. I don’t expect to lose. I have a high probability system I use, I don’t expect a loss So my first trade I want to give myself the luxury. Of trading higher leverage. But it does not mean I will take all five contracts on that first trade. But I know that I can, cause what I’m willing to do is lose half, 300 bucks I’m willing to lose half. So five contracts times 30 bucks. Number over here. Five contracts times 30 bucks is $150. Okay So the first trade I’m willing to lose one 50. If I lose. I need to trade smaller…Okay One reason I like the scaling system. When you lose you should be trading smaller. So now I have to drop to three MES. I have to stick with three MES Let’s say the first trade full loss, second trade I’m perfect…I have to say with 3m. until I make back the one 50 I lost. Once I make that back I can go back to full leverage. Let’s say first strains a loss second trades a loss third trade You’re like all right. Let’s tighten up here. I can only do two MES and I have to stick with two MES is. Until I make back this 90 bucks. Then I can go to three. I have to stick with this three until I make back this one 50. Once I make that back then I can go full leverage. I want to make back my losses by trading smaller. Which is the exact opposite of what most retail traders do they make a loss They just do the same leverage or they go bigger because I just want to get back to even, no we just want to get back to trading smaller. Trading even smaller. With more precision entries. This is a much better system. I believe you will become a much better trader. If you use this sort of scaling method. Okay. So I expect. To not lose my trade. So I’m gonna allow myself big leverage. but I’m also going to allow myself three trades before I have to tap out and say I am done for the day. Okay. You could also do this with a weekly number What’s the amount of that I’d be willing to lose in a week, which by the way lends itself Very nice. To funded trading programs. Because let’s say you had a $3,000 loss you could do. Well I might divide that out amongst three days or five days. And then you simply do the math for each day. Exactly As I showed you here using a scaling down approach. Okay. So there’s some ideas for you of how to take your daily loss. Take your stop-loss. And do some math. Okay, thanks for listening.