When do you call it a day?

Discussion in 'Trading' started by arzoo, Jun 13, 2007.

  1. arzoo

    arzoo

    I was wondering when/how do you guys decide to call it a day.

    For example, in my case, I trade using breakouts and pullbacks, so when the market is choppy I get nailed. After a while, to stop the bleeding during days when the market just swings back and forth I turn off the pc after hitting a set % $ amount loss relative to my trading capital.

    What methodology do you use to avoid the string of losses that occurs when the market isnt in the environment your trading strategy is favored to?

    Also, I've noticed that a good percentage of the time after chopping within a range the market starts moving/trending whether big or small. However, in my case, I just walk away for the day and do something else.

    Just an add-on, is there a indicator or signal that tells you that the unfavorable environment has ended, wherein you start entering again?

    Thanks.
     

  2. I also find that walking away after hedging yourself is often best thing you can do...even though you can be so sure that the market will then behave your way.
     
  3. Have you thought about trading pivots if you're getting killed in a choppy market?

    Anyways, if I hit my goal for the day I walk away. If I hit my set $ loss then I walk away. If I make considerably more (say a trade is a big winner and blows out my daily goal) I leave the house and go somewhere else. This way I can be away from the markets and prevent myself from getting involved. That's just how I discipline myself.