When to Stop Trading and Call It a Day ?

[GlassOnion 12]

today i was facing a little dilemma and was wondering how the more experienced and successful traders handle this particular situation.

 

 

Today i started trading a little later than usual...came to a market than was already moving and before PA took me out was able to catch 10 pips.

 

Then I faced the dilemma...keep on trading or call it quits for the day?

 

I opted to stop.

 

Now i get back just for curiosity ( a couple of hours later) and see a trade opportunity represent itself.

 

 

Since i decided to stop I didn't take it but i wonder how an experience professional would have handled this. keep on or call it a day? (especially on a friday with price having already moved a bit.)

 

 

I guess my question is: When do you stop?

[Mysticforex 13]

If I had decided to stop trading for the day, and assuming I had no other long term positions open, I would not have bothered even to look later in the day.

 

Another thing I have learned over the years ( the hard way of course ) is to do very little trading this time of year, May thru July.Historically, my worst months Have been May - July. I don't know why. Maybe because the weather gets nice here and my mind is on my boat or my motorcycle. I just don't feel like working.

[MaksymGra 10]

Honestly, I think if you call it a day, then forget and don't come back. Even if you come back and see an opportunity, as it was in your case, just close it and forget it.

 

The reason is - you will train your discipline and habit to listen to yourself and these traits are more important for the trader, than little immediate gain from the market. So yes, you might gain some pips in a moment, but you will lose more in the long term by not having discipline..

[SunTrader 10]

I might consider stop trading for the day - if I didn't know which one it was.

 

Thursday BTW.

 

But if I decided to quit that day then that would be it.

[bobcollett 10]

Hi GlassOnion,

Can you pay the rent with 10 pips a day?

If you can , then fine , take a break.

I cant.

kind regards

bobc

[enochbenjamin 10]

Another thing I have learned over the years ( the hard way of course ) is to do very little trading this time of year, May thru July.Historically, my worst months Have been May - July. I don't know why.

 

Sell in May and go AWAY has been a trading mantra for years! However this May nobody was selling!

[enochbenjamin 10]

I had a very similar dilemma today. I was down big on a trade I held overnight and was scalping to minimize the damage. Late in the morning I accidentally closed out the trade for a huge loss. Normally I shut it down at 11am CST. It was 11:04... I saw my setup - I took it.

 

I have grappled with your question multiple times over the years and have decided (i sometimes change my mind) that I should take my setup whenever I see it. So if the terminal is open and a setup appears - I am taking it. The only exception is 1 hour prior to NY close.

 

Just my 2¢

[SunTrader 10]

Having certain trading hours and going against it - by a few minutes, is not the same as making a conscious decision to stop trading a particular day but then going against that decision.

[timratliff 10]

It all depends upon your state of mind... Some days I stop when I reach my normal daily profit level and some days I am totally in the zone. If completely in the zone and getting a great read on the markets I keep trading but decrease size after reaching normal profit level. After reaching typical daily goal I become incredibly selective and only trade ultra low risk / high reward opportunities. I don't have to trade and don't force a thing but am available if the right opportunity is there.

[Mysticforex 13]

It all depends upon your state of mind... Some days I stop when I reach my normal daily profit level and some days I am totally in the zone. If completely in the zone and getting a great read on the markets I keep trading but decrease size after reaching normal profit level. After reaching typical daily goal I become incredibly selective and only trade ultra low risk / high reward opportunities. I don't have to trade and don't force a thing but am available if the right opportunity is there.

 

I sometimes have those myself. I call them "King Midas" days.

[sergso 10]

...........Pip or miss:)

[MaksymGra 10]

Hi GlassOnion,

Can you pay the rent with 10 pips a day?

If you can , then fine , take a break.

I cant.

kind regards

bobc

 

Are you in favour of "enough is enough" or not? Because if he can pay rent with 10 pips a day, in his situation he should catch the moment, but you say "take a break".

 

Or did I misunderstood your message?

[bobcollett 10]

Dear Mr. Grabowski,

If you can pay the rent from 10 pips a day, by all means stake a break.

But you dont make a profit every day, so you will have to work longer on the "good "days .

And I define "good"days as identifying a trend, and staying with that trend until it changes.

And when trading Forex, the trend usually lasts a short while.....10 pips

So you must take a bigger position to overcome the short trend.

You cant make a living trading forex intra day..... unless you have a big account.

kind regards

bobc

 

PS This post will bring the 800lb gorillas out of the cage.

[MaksymGra 10]

Dear Mr. Grabowski,

If you can pay the rent from 10 pips a day, by all means stake a break.

But you dont make a profit every day, so you will have to work longer on the "good "days .

And I define "good"days as identifying a trend, and staying with that trend until it changes.

And when trading Forex, the trend usually lasts a short while.....10 pips

So you must take a bigger position to overcome the short trend.

You cant make a living trading forex intra day..... unless you have a big account.

kind regards

bobc

 

PS This post will bring the 800lb gorillas out of the cage.

 

Here is a question for you: is being flexible and having discipline can go side by side with each other?

[bobcollett 10]

Here is a question for you: is being flexible and having discipline can go side by side with each other?

 

Dear Mr Grabinski

Thats a very good question!!!

I will start with my trading plan . Does it allow me to be flexible.?

Just a little bit, and that little bit costs me money in the long run.

Discipline means I stick to my plan.Come hell or high water.

I am currently SHORT Gold with a new stop at 1396.

Gold is going sideways and can easily break out UP .And I am stoped out

And I have that GUT feeling its going to do just that. Why give away 6 points?

Because my plan says the trend is down and it stays down unless it closes above 1422.

My target is 1356 .

So being flexible and discipline dont fit.

But what happens if something big happens in the market, like China states it is swapping Dollars for Gold. That will change the trend.

My 1356 is forgotten and I will close my short position and go long.

So I must be flexible .And Gold off course drops to 1356 :crap:

And thats why my race horses are eating grass and not oats.

Am I trading badly?

I cant answer your question

kind regards

bobc

[M.A 10]

Dear Mr. Grabowski,

If you can pay the rent from 10 pips a day, by all means stake a break.

But you dont make a profit every day, so you will have to work longer on the "good "days .

And I define "good"days as identifying a trend, and staying with that trend until it changes.

And when trading Forex, the trend usually lasts a short while.....10 pips

So you must take a bigger position to overcome the short trend.

You cant make a living trading forex intra day..... unless you have a big account.

kind regards

bobc

 

PS This post will bring the 800lb gorillas out of the cage.

 

Breakeven --> Profitability --> Consistency --> Paying small expenses from trading --> making a normal living out of trading --> luxurious lifestyle

 

Above is a step by step process once a traders starts trading. First goal is to break-even and not to make a living or not to start thinking if u can pay bills. I dun think we can advise someone to do trading until he has earned enough profit to make a living out it.

You are assuming that Glassonion is consistently making an average of 10 pips a day which might be wrong.

IMO targets should be set by trader himself. If a trader is comfortable in continue trading then why not?

[Patuca 13]

The name of the game is to make money...so....one should keep their lard a$$ sitting on the chair..eyeballs peeled back and focused on the screen till market close AS LONG AS YOUR BRAIN IS FUNCTIONING CLEAR..SHARP..AND FAST. It not, then it is time to do something else...swimm..bike ride...vacation..until mental powers are restored. This is a job. You work it. Then you play...or play then ...work ...which every which applies. If brain is functioning well trade all day ...every trade you can take. At end of day you can count $$$$.

 

My BS opinion...

[jpennybags 11]

If I've lost interest... I stop. Some days the market just isn't going to give it up (it's rare, but sometimes you have to wait longer than is pleasant). To my experience... it will be there tomorrow... if it's not working; give it a rest. It takes a very steady temperament to trade a market that is trading sideways. The opportunities are there, but patients and quiet observation is the key (IMHO). Some don't have the temperament for such things. Better to back away and wait for the trend to develop / resume.

[MaksymGra 10]

Dear Mr Grabinski

I cant answer your question

kind regards

bobc

 

It seems to me that we all can make this thread 20 pages long and even after that won't come up to any conclusion at all..

[M.A 10]

It seems to me that we all can make this thread 20 pages long and even after that won't come up to any conclusion at all..

 

Because each one has his own trading style. Each one sets his own targets.

 

But we can agree on one point to end this discussion that traders should trade till they feel comfortable.

[MaksymGra 10]

Because each one has his own trading style. Each one sets his own targets.

 

But we can agree on one point to end this discussion that traders should trade till they feel comfortable.

 

Aye! Aye! Well maybe this is really what matters. Do not look for the best advice/strategy (but it sure better have one)/time/stop call - as long as you are comfortable -> you go on. Don't be an addict and don't trade with headache, hunger, no sleep etc.. These should be your indicators. You.

[MightyMouse 12]

A trader should only trade when he has an edge. If he doesn't have an edge, he should call it a day before he starts.

 

A trader won't have the same edge under all market conditions. Under some market conditions he may not have any edge whatsoever and he shouldn't trade.

 

A trader should trade only when market conditions are such that he has an edge and he should continue trading as long as those market conditions persist. It makes no difference if he is winning or losing. He should not stop trading if market conditions are such that he has an edge. Losses are a part of the game.

[MaksymGra 10]

A trader should only trade when he has an edge. If he doesn't have an edge, he should call it a day before he starts.

 

A trader won't have the same edge under all market conditions. Under some market conditions he may not have any edge whatsoever and he shouldn't trade.

 

A trader should trade only when market conditions are such that he has an edge and he should continue trading as long as those market conditions persist. It makes no difference if he is winning or losing. He should not stop trading if market conditions are such that he has an edge. Losses are a part of the game.

 

How do you define an "edge"? :trollface:

[MightyMouse 12]

How do you define an "edge"? :trollface:

 

It is a traders ability to take money from other traders. If a trader doesn't know how to do this, he may as well go to a casino with his money.

[M.A 10]

If a trader is able to identify trends, he will consider himself having an edge. It doesnt mean "winning". True edge is only measured after u exit and not before u enter.