Timeframes for taking profits on 15min, 1hour charts?

I've recently started paper trading on a MT4 demo account, and I decided to begin using the Simple Forex System.

For the most part, I understand the way the indicators are being used and the way the system works. I've been using it on 1 hour and 15 minute charts though, and the one thing I'm curious about is the timeframe I should expect to take profits in. If I'm trading based on the hour charts, should I be setting trailing stops and then ignoring all the minute-to-minute movements?

This may just be a psychology issue, but most of the time when I trade based on 15minute and above charts, I will usually close a position based on short-term movements, even when the 15 minute chart indicators still look good. I'm basically wondering how much weight should be given to minute-to-minute movements when trading charts for greater time periods?

In short, 0. Your trade should include a stop loss, perhaps a trailing stop, and you should be ready to walk away. You will literally kill yourself if you sit and watch the tick, because most of the tick is just noise, not a real signal (learned in my favorite new book Fooled by Randomness). I would set a trade and then leave it alone. The only exception is if you manually move the stop to breakeven or +10, I would look at the chart at the beginning of each bar to see how I'm doing.

andersenws

That makes sense. Here's a follow up question. Is there a range of pips I should be taking profit on when trading on 15min or 1hour charts? At one point, almost all of my trades are profitable but I keep thinking that I should wait longer since it seems too soon for a trend to be over. Then the trade will become unprofitable.

edit: Just as some added information, I usually get into a trade and start with a stop loss and then I'll put a 15 pip trailing stop on. Sometimes the trailing stop will get me 2-3 pips profit but othertimes the trade will just go back to the stop loss.

A different approach could be to close half the position at a point that is a certain % profit of your account. Let the other half ride to the next determined %.

Or close out part or all at support or resistance points.


15 min seems awfully short, someone mentioned "Fooled by Randomness". Lots of randomness in 15 min.

Lou