Only while paper trading, or also for real trades?
Augubhai,
Real trades also .
Some times I trade with Strict SL.
Some times not.
Trade1 - Say Enter long - Buy Call.
My mental SL is triggered .
Either reverse the position with equal or more quantities.
Trade2 - Make it a straddle by buying equal or more no of puts.
On exit of the reversed position wait for the loss to get reduced in the first trade.
Some trading like Rajgreenpeace.
Except he averages but I reverse the trade with out lots keeping the loss making position open.
What ever moves has to come down and vice versa.
Losses are only notional when you handle the trades properly.
Say market makers are intraday long and positionally short.on that.
Clear cut well defined discretionary rules - I am working
Also I am working on this psychological trap of my mind.