When to stop trading and call it a day | Forex Factory

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[Day trading] When to stop trading...? 4 replies

When to stop trading and call it a day

  • #1
  • First Post: May 31, 2013 7:03am May 31, 2013 7:03am
Hello to all.
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?

All experienced advice welcomed.
  • #2
  • May 31, 2013 7:29am May 31, 2013 7:29am
Same thing happened to me today actually, I missed some really nice moves on the Yen because I got to the office late. I opted for a scalp trade seeing as the volatility was there and I missed the meaty moves, that was fine enough for me, I just leveraged up on it..

This happens a lot actually, but it's just a matter of what you feel is right, never force yourself to trade for any reason other than simply capitalizing on what you perceive as an opportunity to profit. It should be black and white, if it's not then you just don't have enough experience yet.

The market will be here next week moving the same way it's done for the past 100 years. Just do what you feel, but I don't see the point in dictating your actions based on the fact that you got to the market too late.. It should make no difference.

When you can get to your screens and do the same thing whether you had been there for 10 hours or 1 then you are probably near the 5%.

But to answer the question specifically, Stop when you're no longer having fun... If you're tired, or frustrated, or just not hungry,then I would think life is a calling.
Time hides Nothing
  • #3
  • May 31, 2013 7:45am May 31, 2013 7:45am
Quoting primaguardia
Hello to all. 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...
The quick and easy answer to your question is, "What does your trading plan call for?" Do you have a certain limit on your trading activities? For example, do you have a certain number of pips or a percent of balance gained as your daily trading goal? And if so did you make your goal? In which case you should stop trading as per your plan.

However if you do not have a goal, and your edge presented, you should take the trade if it meets your trading edge criteria.

This all needs to be addressed in your trading plan. Not just your edge definition, but also how long you trade each day (if you are a day trader or scalper), or a certain daily or weekly trading goal in pips or percent of account balance....or simply that you will take each trade that meets your edge.

Advance planning is crucial to staying alive in this business. Now that you've had an experience that is (I suspect) NOT included in your plan...make an addition to address this situation the next time it arises. Its OK to stop trading if you're satisfied with your production on that day...just plan it that way...

Plan...plan...plan...
  • #4
  • May 31, 2013 8:02am May 31, 2013 8:02am
Thank you for the answers.
As of today my trading plan does not call for e certain profit...i try to take what the market gives me following my rules. normally i stick to it until some profit comes out, or price just won't move to give me the opportunity.
maybe it's because i lack experience and so far trading is just a fun hobby i enjoy, but i have a hard time understanding how to apply targets since every day is different...i really don't know the potential moves of the day or if my plan is going to keep in them or just buck me off right away.
but oh well...it's friday...let's enjoy the week-end. :-)
  • #5
  • May 31, 2013 8:33am May 31, 2013 8:33am
There's no right or wrong, but it sounds like you haven't finished your trading plan..

I trade all valid signals, removes any indecision (indecision is an account killer) If I stop it's cause I've had enough and I'm not going to be looking at charts then anyway.
tradewith60
  • #6
  • May 31, 2013 8:53am May 31, 2013 8:53am
true...my trading plan is surely not complete.
until recently i've been looking for the key to profitably trading the market. (maybe there's better ways but this is working so far)
not having any trader friends it makes the journey more difficult since i need to learn on my own and don't have a real measure of success of failure.
do you set a profit or pip target per day? per week?
  • #7
  • May 31, 2013 9:37am May 31, 2013 9:37am
you trade when you feel rested, when you have spare time plus you trade when you feel confident - that's it
On my way to financial independence - if others can do it - I can do it
  • #8
  • May 31, 2013 10:27am May 31, 2013 10:27am
Quoting primaguardia
true...my trading plan is surely not complete. until recently i've been looking for the key to profitably trading the market. (maybe there's better ways but this is working so far) not having any trader friends it makes the journey more difficult since i need to learn on my own and don't have a real measure of success of failure. do you set a profit or pip target per day? per week?
No I repeat the same process everyday, I take the valid trades, I exit at valid exits, my profit is what the market has given me.

It requires no thought for entry and exit, but I have to do some prior analysis which I usually do the previous night.
tradewith60
  • #9
  • Jun 1, 2013 5:52am Jun 1, 2013 5:52am
My goal is to be in the market until 12.00. Only a bit longer if necessary or on panic days.

Lots of free time is one of the benefits of being a succesfull trader.
  • #10
  • Jun 3, 2013 3:09am Jun 3, 2013 3:09am
Thank you all for your comments.
  • #11
  • Jun 4, 2013 10:55am Jun 4, 2013 10:55am
It depends on your style, i like to trade when the market is active and volatile. I find that when i trade during these times i increase my profit potential as apposed to just trying to take every trade regardless of the market condition.
Then again i trade subjectively so i have that luxury.
  • #12
  • Jun 4, 2013 11:24am Jun 4, 2013 11:24am
Quoting loveforex
It depends on your style, i like to trade when the market is active and volatile. I find that when i trade during these times i increase my profit potential as apposed to just trying to take every trade regardless of the market condition. Then again i trade subjectively so i have that luxury.
I agree. It all comes down to your own personal tolerance for risk and volatility. Some people are ok with a 5% drawdown on a day others are not.
THERE IS AS YET INSUFFICIENT DATA FOR A MEANINGFUL ANSWER.
  • #13
  • Jun 4, 2013 11:26am Jun 4, 2013 11:26am
Precisely.. if im risking 1 penny per trade i can trade all day and all night. Knowing your risk threshold is crucial to understanding your trading capacity
  • #14
  • Jun 29, 2013 1:18pm Jun 29, 2013 1:18pm
When you are tense or not find clear trnd avoid trading. It is not necessary to trade every day do trading when you are fresh miond. When you got your target not trade more You may loose your earned profit. Do not trade in agression you can not defeat market.
Master Forex ║ bonus up to 75% ║Minimum deposit $1 ║Swap free trading
  • #15
  • Jun 30, 2013 2:50pm Jun 30, 2013 2:50pm
i pretty much look for certain events (right or wrong) to happen when i trade...although i try to follow my rules as much as possible sometimes the unexpected happens.
when i don't follow my own trading rules it's my fault and i'm ok if things don't turn out positive.
but it's more of these type on intangibles that cause me problems....do i trade today? no?? ok...then i should not even look at the charts...but sometimes i do and there the problems start. :-)
  • #16
  • Jul 11, 2013 10:06pm Jul 11, 2013 10:06pm
I know I can not be a millionaire in this field not I aimed like that. if I am totally fail to manage my accounts several tin=me I will end forex trading , try to do something else. With regular small profits I will continue trading . I hope some day I can become a successful trader.
Master Forex ║ bonus up to 75% ║Minimum deposit $1 ║Swap free trading
  • #17
  • Jul 11, 2013 10:25pm Jul 11, 2013 10:25pm
When to stop trading and call it a day? I based it on Liquidity I usually start 1 hour Before london open until the end of London-US session overlap. No liquidity no valid set-up which include bank holidays. However it really depend on how you trade and your personality some would keep trading over and over until they blow their account .
"I made money every time you place your Stop loss too close to ME"
  • #18
  • Jul 11, 2013 10:44pm Jul 11, 2013 10:44pm
I set an achievable target at the start of the week (depending on how much time i have to trade). Say 25 pips/day (125p/week) and then trade everyday. Wait for the set-ups... and stop when i've reached my goal in pips.
  • #19
  • Jul 11, 2013 11:25pm Jul 11, 2013 11:25pm
Its not air but your body that decides when and how to breathe.

Similarly, its not you but your system that dictates when to start trading and when to pack for the day.

No one here has a definitive answer to your question. The answer lies in your system. Check your system for the answer.
The Thief of Wall Street
  • #20
  • Last Post: Jul 11, 2013 11:45pm Jul 11, 2013 11:45pm
Know thy market, Know thy System and know thy personality!
"I made money every time you place your Stop loss too close to ME"
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