The Case Against Letting Your Profit Run
This is just a shorthand sentence to reduce the endless complexity of the trading world.
haha. great way to avoid getting "involved".
So, at which do you decide enough is enough? In other words, how do you INCORPORATE THE ELEMENT OF TIME into your trading? In my opinion the element of time is a very important element that needs to be taken into account.
This all depends on the strategy used. And there is many threads on google discussing this very question. One closing strategy that works for 1 strategy, will be crap closing strategy for another. Just search google and other trading websites.
Let your profit run can be used in two circumstances:
1. When you already know something is worth holding... Like a good stock share or a good coin. So you hold it for several years and earn as much as if you traded daily without bothering.
2. Letting profit run for trading purposes only(like swing trading or intraday trading) is truly a complicated case. At the moment I would say trading is about taking profit at the closest SR level.
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Tell me if you've experienced this before: You have an open trade that's making 10 pips, you wait, it reverses, now it's 3 pips in loss, you wait some more, it goes back into profit, and round and round we go. As a matter of fact, I'm in such a trade as we speak.
So, at which do you decide enough is enough? In other words, how do you INCORPORATE THE ELEMENT OF TIME into your trading? In my opinion the element of time is a very important element that needs to be taken into account.