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!