A lot of traders end up losing too much in the beginning on trades that did not work out as planned. One way to mitigate risk and set a sturdy risk control goal could be to set aside a percentage of your account balance, 2% for instance, on any one trading idea. This would help to reinforce the approach of playing a good defensive game in the markets – critical to longer term success.
This also means you can pat yourself on the back for sticking to your risk goal even when your trades do not turn a profit.
It is important to set realistic profit targets. Remember that even successful hedge funds and fund managers struggle to make more than, say, a couple of per cent a month on a consistent basis. If you are realistic about the sort of returns you are expecting, you won’t end up putting too much pressure on yourself for every single trade, and this should help reduce the stress of trading and have a corresponding impact on your results.