Take A “Breather” When Necessary
If you lose a certain predetermined amount of your starting capital (e.g.,
10 percent to 20 percent), take a breather, analyze what went wrong, and wait
until you feel confident and have a high-probability idea before you begin
trading again.
–-Jack Schwager, from
Schwager on Futures: Technical Analysis (1996, John
Wiley & Sons, New York).