know when to hold them, know when to fold them?

[Fire580]

I have been a member here for almost 18 months and I can't recall much discussion about "profit goals" daily, weekly or what ever - I have heard some talk about getting out once you reach your goal - example if you reach 50 Pips get out and stay out all week, - or I have heard if you believe in your system and you get your systems signals there is no reason not to take them? so what do you guys think - what is the best way to handle this - have there been any studies on this - to stop trading or not that is the question

[eternalfuture]

Fire580,

If you have a system, and if you trade based on your system, then I don't think there's a reason of not following the signals.

If you skip the signals, what would be the use of your system, then?

About quitting after winning, I don't see any good reason for doing it. But that's my opinion. I prefer to trade and keep on trading as long as there are opportunities to take. If there's none, then never mind trading.

On the other hand, there's a good reason for me to quit trading for a while after a losing streak. Losing, to some people, creates frustration. Losing streak could damage your objectivity.

For this reason also, consecutive losses can be used as an indicator of system performance.

Hope this helps.

[mishak]

Hi Fire580
I agree with everything Eternalfuture has just said.

Besides, there is no reason to plan your profits (and limit them).
It is not you, not your model - it is the market who gives you the opportunity to make profit.

Just this winter, Iraq war and every week-end bad or good news comes out. Based on this just open the right side for a big movement in Euro for 24-36 hours and you are safe. No reason to miss this opportunity.

Every August a lot of dealers go on vacation. You can not expect the same performance of yourself on that month.

Sometimes currency trends, sometimes stay in ranges. You may have better performance in ranged market, so why to miss it ?

Limiting losses is the other bear. Dealers in banks usually have day, week, monthly loss personal limits. If they reach it, they are put on hold till the expiration of the period. It is good for your self estimation

You are no obliged to sit at the market if you do not feel so, did not have a good sleep or whatever. One of strategies is to hunt for big moves on un-expected economic figures. It may happen 0-1-2-3 times per month, but gives a reasonable big movement.

I would not target my performance, unless I am on trading for living or a portfolio manager . But this is more about money management.

Speaking of setting T/P orders is another topic.

Take care

[Fire580]

Thank you mishak, and eternalfuture - your thoughts make alot of sense - thanks for taking the time to share your thoughts on this subject