You acknowledge the day is a loss at the closing bell. 1 PM out here. Unless you're not feeling well why would a profitable trader quit before it's over? You have a passion for this or you don't, if you don't, you're already finished.
When there is nothing to do - do nothing. If you can remember this rule and do not violate that when you are down on the day, you are ok to stay watching. But if you cannot control yourself and worst yet, gets mad, then walk away as soon as you think your emotion is out of control. I learned that the very hard way, but that is not necessary because I have tell others and most individuals can learn from others' painful mistakes.
I only trade once a day, all good trades, are either profitable the first time, or I do not trade that instrument until I see a very big reversal signal over the next 5 hours within the same instrument. Works very well.
I have been trading the e mini Russ with a 1.5 stop but am having a hard time get to a 3 point win so I am going to regroup. I have found that being honest and objective with myself has turned $500 losing days, trading with anger and desperation to trading to BE and then plus $100 and now working toward plus $200 to my goal of $400 consistent a day. I know it will take time. Honestly, on my biggest losing days I don't 1. Follow my rules 2. Trade with Discipline 3. Take Flyers 4. Get angry and take more flyers 5. Give up and go workout at the gym
I stop when there are no more trades. Also I stop before the close so I am not pressed into clsoing the trade. Somedays there are many trades, others there are few. Let the market action dictate , imo. Of course this requires discipline. If I can't have discipline, or it if it is starting to weaken, then I stop, of course. --Cheers.
I say do what works. As demonstrated here, each trader has a different method that works well for them. These are most likely based on account size, experience, and most of all - Risk Acceptance/Aversion. Just don't keep utilizing a method that is generating consistent losses. Find one that fits your style and run with it (at least 'til it stops working ). One important factor to consider: Your personal daily goal should not be to "get it all back" after a down day. Accept losses. Set goals, write them down, then follow them. If you do not adhere to your trading plan, then invest in mutual funds or simply go to the nearest casino. Slow and steady wins the race. Oh yeah, I maintain a set daily profit target. When it is met, I shut my system down and go to the golf course, watch movies, etc. etc.
but by stopping after a "goal" you are limiting your winners and winning days thus overall profit.. how do you know the next trade you would have taken that day wouldnt' have been a winner as well????
Try to work out what it is about the situation that makes you play mindless roulette. Do you double up on losers, or watch in fascination as they run away from you? Or do you initiate masses of new trades that do not fit your entry criteria? If it is the fear of loss, practice taking small losses. Just spend a day voluntarily taking small losses (previously recommended by Hypostomus). You are allowed to run your winners. If it is the desire to beat the market when it is running against you, you should consider whether to stop trading altogether. This is addictive behavior which will only get worse. Short of quitting, you need to handle the behavior pattern. Whenever you recognize the symptoms, stop trading. Do something completely different. Walking round the block is not sufficient; you need to occupy your brain and body 100% away from trading. Try squash (cf Niederhoffer).