Stop trading when profit target met?

unclesteve

Casual Member
Hey guys, sorry if this is already on here, but out on the net a few people recommend setting a weekly profit target and stopping trading if you hit it.

What do y'll think, and whether you agree with the idea or not, do you do it? Do you wish you had?
 

mang_ncep

Forum Newbie
Conscious or unconscious, the target profit in our heads can affect the success or failure of our trading. Therefore we need to set it so that what is the target, not just a dream, but really we can achieve. Try get profit with FXB Trading
 

Kooyar

TFG Forum Junkie
Nor a stoploss?? I think that is dangerous not to set a stoloss.
Here is the thing, look it as a business. When large size businesses get to a financially difficult situation they start to shed some of their costs as much as they can but they do not close out the entire business immediately and they always look forward to future and evaluate the market situation for few months ahead to take their critical decision in different period of time. Critical decisions are not being pre-made from the beginning of the business. My point here is that when you are opening a trade you should have a exit plan and good understanding of the criteria that you will exist the trade if things didn't go as your original plan. But having a plan to exit is totally different than setting up a stoploss. I'm not suggesting this approach to everyone. Using no stoploss needs a lot of practice and deep understanding of the market moves. It needs proper usage of leverage and indeed an emotionally detachment quality to the trade which is a quality that should be gained gradually. But, this is my experience once you understand the market moves deeply, you will see how safe it is to put your money in. Market never surprise you in a long term view. Gaps, short terms excitements will dissipate gradually. Leverage is a free borrowed money, which if you can properly manage it to your advantage you should be able to be ahead of the game. Line of credits/ credit cards and any other options will impose interest rate to the used credit. So think about it. This is an interesting fact that you just need to take advantage of that wisely.
 

vickie

Vickie
I think your question got derailed by the 'no stoploss' debate. Anyway, you mean like a weekly target right?

I feel that if your trading is going well and you are disciplined and making wise choices, you should take advantage of opportunities as they come along. There are going to be weeks where it's slow, out of season, sideways, etc., when you will have to sit out of a lot of trades by necessity because they are not good trades. So why not take advantage of the market when it's moving.

The risk is that you become obsessed and start making risky unwise decisions to fuel that adrenaline high that you get from trading. I had a period of time like that, and I took off from trading for a long stretch (like 2 years!).

Not suggesting that everyone do that (I had other life-type situations that I was dealing with as well at the time) but when I came back, I didn't feel that impulsive drive anymore to constantly be at it. In fact, I felt renewed and my understanding seemed to deepen. So, I think that the answer to your question depends on your personal discipline and level of trading.
 

Plata

Casual Member
I second vickie and want to provide a slightly different angle.

In behavioral economics, there is a theory and some empirical findings about having weekly (or whatever time period) profit targets (if interested in more details, see for instance here). A person under such a target tends to stop her activity early during productive times, while putting in extra work during unproductive periods.

However, it should be the other way around. You should invest more time during productive than during unproductive periods. In our context, trade when the market provides clear signals. Don't when it doesn't. Having a profit target for a week may induce trading efforts in a rather unproductive week when you should shift you focus to other activities.
 
G

gauri

Guest
Hello,
I think If your profit target was 100% then you would have exited the trade once that target . you will either place a hard stop at your entry price or set a trailing stop. You set a profit target for your trades, then you exit the trade once that profit target is met.
Thank you
 
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