When to stop trading for the day ?

kill it by lunch and enjoy the afternoon if you're up enough/in profit.

OR

go early afternoon to see if there's anything.

OR

if in lik futures and you take a couple of rough hits, just call it a day.

OR

if you're one of those special ones, you get to go the whole day!! :D
 
Very true.

Quote from Hydroblunt:

This is not true at all. Maybe in futures it is different (and I don't think it is), but in stocks there were key fundamental dymanics why the morning always seems so much better. The same setups hold a worse risk/reward ratio, sometimes one not worth it, so you have to find new set ups which rarely have a comparable risk/reward.

At the open, institutions are unsure of price action. There is more volatility, the reversals are more extreme and faster, price is uncertain. Around 11am, once the more speculative action stops, it calms down and the fragmented progs get to work. Now I used to trade some nice setups around lunchtime, but not on a consistent basis. Same for the afternoon, most of the times the price action was too arbed, it was more about volume and big sizes exchanging, rather than big moves.
There was a clear pattern of 9:30-11:30, 11:30-1:30pm and then the afternoon. Each had their risk reward, I personally found lunchtime having the best risk/reward but not as consistent, afternoon being the overall worst for everything and the morning being the most consistent for good risk/reward setups. This is obviously a generalization, not an absolute.

There is more than enough observation by many traders that for the last few years, mornings were the prime time and the rest of the day is not as good. For some, it's just not worth the risk to keep trading after the morning. May depend on the financial instrument, commissions, leverage, system, etc.

I think if you trade more than one instrument, then it should not be a real issue.
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Quote from tradingkevin:

...Can anybody share their rules on when they stop trading for the day ?

Comments, ideas, suggestions are very welcome ?
( I always try to improve my plan and we need to pick each others brain for that ... )
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You should only stop trading for the day when you have a statistical reason for such.

For a simple example, lets say statisticallly most of your profits occurs before 11am est and after that you have a high probability to lose money.

Statistically you should stop trading by 11am est until you can figure out (resolve) what the problem is with your methodolgy for trading after 11am est.

This reason alone is why some trader's say knowing when not to trade (statistical proof) is an edge and improves your profit curve.

Mark
 
If your setups are there you trade. If they are not you don't. To me, it's that simple. Some days you win and some days you lose but if your setups have a reasonable probability of success you need to take each one as they come.
 
When I have my favorite dish for supper, I could go for 2 helpings or more. When it's leftovers, one is enough. :p
Same with trading. Define YOUR level of COMFORT and GREED and STICK TO IT!
 
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