How Do You Know When to Stop Trading for the Day?

28 Jan

We’ve all asked this question, so what’s the answer?

Should you stop when a specific $ amount is reached? When a specific # of points have been tallied? When you have 2 losers in a row? Well I can’t tell you what’s right for you, but I CAN tell you what I do. Over the years I have noticed that there are a handful of great days in the month and the rest are simply average. Therefore when I begin the day and I have a winner, followed by another winner, and setups continue to hit targets, I will continue to trade all the valid setups until one fails. This way, I take the most out of a highly technical day which may only happen 5 or 6 times in a month. When they come, mike them for all they’re worth!

Somethings to help…

  • Identify the type of day (trend or range bound) ASAP.
  • Determine if the setups are technical and providing reduced risk trades.

If both these criteria have been met and I continue to have winning trades late into the morning then I take advantage!

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