Taking profits is hard - How much you left on the table today?

An old-timer once told me, "there's only two ways to get out, your're either too early or too late, very rare to get out just right"

Personally, I prefer getting out too early......rather leave money on the table then have a winner turn against me.

 

Many thanks for the quote. Now I know I need to upgrade my exit rules.

 

Something we try to teach our new people is to let the market tell you (yell at you) when to get out....if things are going against you, perhaps the best trade of your day is taking a small loss. That being said, how about this to help with the psychology involved...."get out if you're pretty sure you can get back in at a better price"...think about it...even if you sell at .40 and get back in at .30, at least you've saved that dime.........

Don

 

Thanks Don. This thread is not about taking losses. Your suggestion above including re-entry decisions would allow too many discretionary actions - a main source of leaving money on the table, as I guess.

 

Hi Don,

There are other threads on ET recently telling traders not to display their active P/L figures on screen. One of the posters even mentioned their prop firm pre-set their screens that cannot display their active P/L. Do you have any comments for that? TIA.

 

wisdom from porky;

 

One of the best pieces of advice that I have ever been fortunate enough to have received is as follows:

"That which puts you in a trade, should be that which gets you out of a trade."

Once I figured out what this statement meant, I witnessed my ability to procure more of my profits increase dramatically.

 

Thanks Nkhoi and Golablue.

 

I might argue that it is the "who" is using discretion in their trading as far as leaving money on the table. Some of my tape readers are uncanny in their skills.


Two trains of thought on this...simple entry / exit based on the market vs. P&L seems to be the stronger point of view...staring at a red number hoping it turns green causes a lot of heartache and missed opportunities. The old "you can't be in a good trade, when you're stuck in a bad trade".

Don

 

How much have we left on the table?

Wow, I never thought about it like that. I walk away from a poker table after a winning session without a care for all the money still on the table.

My goal is to have winning sessions and play well. If I tried to get all the money, I'd probably lose a lot of mine.

Always felt decisions in this game need to be based on market and what it's doing, not on how much money I've made or lost recently.

Different strokes, maybe.

This game is awfully easy when the money factor is taken out. At least for me. Trying to get all the money, even thinking about it, tends to take this game off the "easy" setting. WHY???

Just take what's there. Then come back when there is more.