Ok, here's my problem - I'm making too much money... Obviously I'm joking but there is some truth to the statement. I'm making money in a way that is inconsistent with my original hypothesis and I'm wondering what people think. Here's the deal... I take multiple positions near the open. For the sake of arguement, let's say I have five positions that I think are high probability. Each position has a stop loss of $500 and will take profit at $1000. Excluding slippage etc. I have a potential loss of $2500 and a potential gain of $5000. Now let's say the market goes in my favor and all 5 positions are very quickly worth $200 a piece - I'm up $1000. At this point the market is showing signs of weakness and I'm conflicted. On the one hand - I want to let my positions play themselves out. I wouldn't have taken the positions if I didn't have some faith in them. On the other hand, $1000 is $1000 and I can finish a tough days work after only 45 minutes. What would you do? The last couple of days I've been taking the money and I have to admit it's kinda nice.... but it's still not what I originally intended when I made the trade. I'm sure that some of you have faced this problem in your trading. What did you do? Does anyone know of any publications that address this kind of money management conflict?
i let my positions play out....they either hit my stop or profit....unless like you say i feel the market going in the wrong direction where i get out somewhere near my entry point ( wont let it slip into neg territory ).....very good question and probably the most important thing to focus on outside of your stop.....people focus lots of their time looking at the setups and all kinds of indicator only to mess it up once in the trade...