There is no perfect time to bank your

profits

Many people simply focus on the trading setup and how to enter the trade

http://www.netpicks.com/day-trading-books/

Think of trading as being an exceptional risk manager first

Are entries important?

Get trade on in consolidation

Give stop wide berth for flushes

…it's probably going to end up being a wasted opportunity for you.

It's impossible to get your exit (or entry)

perfect even if you've done everything right

We never know the right decision until some time in the future after we've made the decision

Big winner turns into big loser

Lead to a trader acting more quickly in taking

their profits in the future

Snatching at profits

More and more trades continuing way past

where they have exited

Rabbit in headlights

No idea whether to hold or exit

Acting decisively when sufficient information is available is a key

attribute of successful traders

Have pre-planned method of exiting trades before you

take them

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Target Levels

Fixed targetDynamic targetMarket levels

Profit Stop Triggers

Trailing stopReversal activity

www.netpicks.com/failure-test-trade-setup-in-action/

Flexibility of size

Let's look at a hypothetical trading

example

Buy 3 contracts of NQ @4170.00 - stop of 5 points.

Your risk on the trade is $20 per NQ point x 5 points x 3

contracts = $300

Risk on the trade falls to $20 x 5 points x 2

contracts minus $20 x 3 points x 1 contract =

$140

Another 1 contract off @ +6 points - risk on trade is $20

x 5 points x 1 contract minus $20 x 3 points x 1 contract minus $20 x 6

points x 1 contract = - $80

Your trade will be up $80 if the market comes all the way

back to the initial stop

Trading is a marathon not a sprint

A smooth equity curve leads to emotional stability as a trader and to bigger size

Until you make that cash register ring your

profits are not real