When should a trader quit trading?
I have heard many sides to this which includes:
1.After a big win or winning streaks
2.After a losing streak.
3.when predetermined daily Profit traget has been reached.
But I have issues trying to know when to quit because:
1.During a winning streaks I feel any legitimate opportunity seen should still be taken as these opportunities don’t come all the time.
2.If I quit up after a losing streak who knows I the next opportunity will bring profit and cover up for my loses.
3. I might keep losing money in an attempt to get to my desired profit.
Please let me know your thoughts on this.thanks
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I think trading is a discipline. Success is not possible without a plan and discipline. You have to have a specific goal and keep trying to achieve that goal.
fix a maximum amount of trade per day and dont break this rules
This is an obligation for every traders to have this limit, because if you continue to trade you’ll be involved with emotions (regarding more profit or to refill your losses)
Having this rule can help you to acquire discipline and riguor. this is the best way to be more professional and avoid most of the damages (+ no overtrade)
I dont think there is exception to this rule. even when there is a market crash , you’ll have to accept to not taking every setup (maybe you can increase maximum setup specially for crash if you see a death cross on indexes for exemple, but you’ll have to reduce it after when the market make a golden cross.)
conclusion : always fix a maximum amount of trade per day. there will always be opportunities in the market. as long market exist. so if you missed one trade today because you reached your maximum setup limits , youll have one other opportunity tomorrow
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As Duc said above, decide how much monetary risk you’ll take each day, and keep to it. For example, a 2% maximum of your capital, which gives you scope to change lot size.
Whether you’re winning or losing it’s human nature to be psychologically affected. By adhering to a strict monetary management criteria, it ensures capital safety and prevents overtrading.
And there’s always another trade waiting the next day.
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True thanks alot
Hmm I think I will add this to my trading plan thanks, if I may ask how many trades (maximum) do you think a professional day trader should take per day?.
Hmm true thanks alot!
2 losing streaks. 2 margin calls. I didn’t need a Zen master to tell me to quit trading immediately.
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On point! Achieving your goals without a plan and discipline is not just difficult in forex, but almost all fields too.
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Lol Margin call? I sincerely pray never to get there.
True thanks alot.
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A disciplined pro trader would only risk a certain % of capital per day. That could be one - four trades, more likely on a daily time frame.
Any more, and it’s scalping territory on the lower time frames. Keep that up for a year, and you’ll burn out - I would…
What you need to get your head around is disciplined money management and keeping risk low and being sensible. This is critical, not the number of trades you make or don’t make. One pro trader, I read about, had the patience and discipline to wait for one trade in one year to make his annual profit.
Just stay in the game because you can’t trade a zero capital account live.
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Thank alot. I get the point now, I guess our goal is to ensure we live to trade another day.
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Totally! Profits and Losses are just like the Ups and Downs of life, Doesnt mean we quit. Got to hold on strong.
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After you have hit your goal for the week. keep controlled and disciplined.
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You should make a plan and set a goal to achieve in a week. After hitting your goal you can quit your trading.
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Jennifer, IMO that’s not the ideal approach - it’s back to front. A better plan is to set a money management goal of say 2% risk per day - with a longer monthly achievement goal. Otherwise it’s guaranteed you’ll overtrade to try and meet a weekly goal. That’s a fast route to blowout of capital.
And I wouldn’t quit my trading, providing I was keeping my 2% risk intact - unless running into a losing streak where it’s better to take a breather, reduce lot size, and go out and celebrate life…
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When we lose in Forex it is good time to quite in forex trading but for temporary time and should find the causes where we are doing mistakes and after it we should start trading again and try to avoid to repeat these mistakes again.
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depends on his trading style. if he is a swing trader he should do maybe 1-2 per week. for an intraday its 2 per day maximum, and for a scalper is between 5 and 10 per day
you are not obligated to take 2 per trade if this is your maximum. take only the best opportunities. if there is just 1 opportunity take just one trade. but if there is three oportunity on the same day take only two
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Quitting should be the last option according to me. Try hard, forex is difficult but not impossible.
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