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Rich,
I am in the exact same boat as you. I think it's a personal matter, really.
My daily goal is to make 4 handles... $1000 less commissions. I break
my daily goal into two, two-handle trades. Then I turn off the computer.
If I lose 4 points, I call it a day, as well. That's the max I'm willing to
lose on any given day.
As my account builds, it's my intention to trade 2 lots, 3 lots, and
eventually 4 lots. (Right now I can't "see" past 4 lots -- maybe when I
get there...).
I think the reason I've chosen to do it this way is because I don't really
perceive myself as a "real" trader. Let me put it differently: trading is
not who I am -- it's what I DO to facilitate the living of my dreams.
In other words, I don't want to eat, sleep, and breath trading 24-7.
I use the $1000 a day (soon to be $2000, then $3000, and then
eventually $4,000) to allow me the time freedom and money freedom
to live my dreams. Which for me is:
1) being a great "stay at home" dad for my kids
2) writing and studying music
3) writing inspiring stories and books about life
Having said all this.... it would be really nice to let the profits run
on occasion. I haven't found a "real" answer to your question. For
I, too, have had the same experience in the past as you have... that
of:
"It seems that every time I grab the 3-5 point profit the trade
goes on to 10-15 points and every time I let profits run, the 3-5 point
profit disappears. I am not particularly found of trailing stops
because I have to be willing to give back a fair amount of profit."
This is my experience as well. BUT... that's what led me to the
decision I've come to: "Make 4 Points Today, Then Go & Play"!
I'd love to hear what other feedback you get. Please keep in
touch... I'll add you to my list of S&P traders whom I try to keep
in contact with.
Warmly,
Brian Keith Voiles
At 08:34 AM 11/17/2001, you wrote:
>I am an S&P day trader and keep going back and forth in my mind my exit
>strategy. There are 2 schools of thought 1)let profits run 2)don't try to
>be a pig on every trade. It seems that every time I grab the 3-5 point
>profit the trade goes on to 10-15 points and every time I let profits run,
>the 3-5 point profit disappears. I am not particularly found of trailing
>stops because you have to be willing to give back a fair amount of profit.
>Others use a staggered exit strategy such as take 1 contract off at 3 points
>another at 5 another at 8 etc.
>
>I would be interested in hearing only from successful S&P day traders which
>school of thought they follow.
>
>Thanks
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