Just curious if some of you traders have a daily profit target that once hit, allows you to close shop for the day and pursue other interests. I don't currently, but am thinking about it. I was up yesterday and made a late day trade and lost all profits plus some. The amount I had for the day would make for a nice yearly salary if I was able to hit it daily. Sorry if this has been asked before, I'm somewhat new to the board.
I do quit when I would rather do something else for the afternoon. I only trade the morning most of the time anyway. Best action on ES is then.
Might be a good idea. I do it sometimes. The thinking here is flawed though because the times you should walk away is when having a poor day, not a good one. Overall I think you hurt yourself with that strategy of leaving while hot.
HMMM....I think that is right. Make the most of the good days. Just I do not trade all day most of the time. Too busy studying all the info.
I think for a newbie, stopping at a set amount of profit is a smart idea. It helps to build confidence by ending the day green and hopefully it brings consistency to their trading. I think it's really up to the choice of the veteran traders whether to stop or not when hot. I've read a number of times on ET that it's stupid to stop while your hot but it makes me wonder if this is the right thing to do since most people on this board lose money. Just my two cents...
i guess it is not such a bad idea - but only if you also have a fixed daily stop loss. please let me add that if you are already up a good amount - you shouldn't let it all slip away with only one additional trade. good luck to everybody.
I usually stop trading when I have a profit of $500 a day. Seems like a small amount but very easy to achieve.
I live by this rule. After my daily goal, or my trade goal, is achieved I religiously exit the trade. There are those who call me crazy for this practice but it has calmed me and focused my successes. I set my initial trade parameters to make a certain capital return per trade and I have lived with this practice for three years now. I NEVER hit the grand slam, but then again, I never set out to achieve that. But I do have a long string of base hits!
For a system trader, generally, you should trade all day to utilize the statistical edge with the high frequency of trades per set time. For a discretionary trader, generally, should be trading until they're out of sync with the market.