taking the profit

Discussion in 'Psychology' started by harbinger, Mar 4, 2009.

  1. harbinger


    I do not know if this is where this belongs but I am a prop trader and seem to have trouble taking profits, trying to hold out for more and getting greedy. Any suggestions as to how I can remedy this?
  2. I suggest trading in two 1/2's. Take off first 1/2 position when twice initial risk has been met and trail the other half.
  3. Build up an appreciation for the big picture and the potential for profits long term when you take profits that you have the ability of getting.

    Also make yourself understand that it is impossible to sell at the best price.

    It also depends how volatile the movement is and what time frame is the most profitable at the time. Lets say the market is making weekly swings and is in a downtrend. Every time the market makes a new low the e-mini goes down 8-10 points. The weekly swing trader will have a target at 8-10.

    The only difference within day trading is that you have to be able to adapt to the time frame of market swings and then understand the amount of movement that comes within each single time frame. That comes from experience.
  4. Redneck


    I have an idea - You enter the trade, I'll exit it and take the profit
    (I have no compunction whatsoever about taking money)

    If you don't like my idea - may I suggest doing what I would do

    Food for Thought
  5. If its obvious its obviously wrong in a game that is the exact antithesis of human nature. So....

    Take the profit. Within reason f*ck letting it run.

    Breakeven stops are losing propositions.

    Trailing stops are over the long haul worse then profit targets.

    If its a well respected market cliche its very probably wrong.