Maximum Loss Per Trade
                       The next step is to determine  your  initial  maximumloss per trade.   A good way to  do  this  is  to  paper  trade  your  stockselections for a period of time to approximate  the  percent  of  profitabletrades you get assuming entry. If you select a stock in  your  trading  planbut don’t get good entry it doesn’t matter – no entry no  loss.  Keep  trackof the range from entry  to  high  because  this  is  so  important  in  thetraders’ equation regarding maximum profit per trade. It  will  be  rare  ifyou manage the trade to its full range,  but  it  will  tell  you  that  thevolatility and trade selection was good.  Allow  room  when  judging  shortsbecause it’s not easy to get the tick.                        Paper  trade  from  entries  off  the  daily  chartsutilizing inflection points such as  a  previous  high  or  low,  and  swingpoints (see Week 4). Only use  the  5-min  charts  if  you  have  a  clearlydefined pattern such as a slim jim with a definite entry price.                       Don’t get  to  excited  if  you  have  great  successbecause it’s not nearly the same until you find out whether or not  you  canpull the trigger (enter) or push the buttons (exit) with  real  money.  Thatis the psychology  they  talk  about  but  never  define.  It  is  not  thatdifficult if your selection  process  is  good  and  you  have  enough  selfconfidence to realize the market controls us (not vice  versa)  and  that  agood trading plan will succeed over time.                       Paper trading was successful, ready to go  live,  butstill nervous. Here is a very conservative plan to use.