6.What steps do you take to control the downside?

This varies depending on risk/reward, market volatility and the certainty of each trade. Basically two of the three trends (short, intermediate and long term) should be in the direction of my bet. I also vary the certainty factor. That is to say, I demand greater certainty for counter trend trades as well as those placed during greater market volatility. Finally, my trading partner is empowered to " pull the trigger on me" if I can't convince him or her that the trade should be kept on even if not according to original plan.