The answer depends on the type of operation we have, but even so we are not aware of the time it takes for the price to reach our Profit or our Stop. Usually we feel frustrated when the price reaches our stop very quickly, we consider at that moment that the market has not even allowed us to get our operation to take shape. At this point, it is where we must be alert since, as a result of emotions, we can initiate another operation in order to be inside the market. This happens mostly with beginner traders, "the need" to feel that they are traders incites them to want to be inside.
Impatience is also another factor to consider, many traders do not wait for the operation that marks their plan and rush with their entry into the market. Together, these factors lead us to overtrading as a result of emotional processes that end up directly affecting our trading and our account.
It is at this point, where we must have the ability to determine the time to end the trading session, and for this we will establish some limits that will help us to achieve it. First of all we must delimit the time, as well as our plan marks us an entry of operation in the market, in the same way we must establish a maximum time to be in front of the graph, this will help us to avoid falling into addiction. We must keep in mind that trading requires maximum concentration, and it is scientifically proven that the human brain can only maintain that degree of concentration between 60 and 90 minutes approximately. It will depend on the person, but beyond that time our concentration decreases considerably.
Secondly, we must set an operational limit, establish a trading plan, determine a number of operations per session, so we avoid overdoing it and reduce the trading time in front of the charts. Obviously, it will depend on the type of operation you perform and the temporality of the same. Keep in mind that the market does not give more than 2-3 good operations per session, at least in my case, beyond that we must consider if we are not forcing the operation.
Thirdly, it is necessary to set a loss limit, whether we make 1, 2, 3 or 4 operations in five minutes or in an hour. It is imperative that we set in our trading plan an amount, and no matter what happens, stop trading. This rule must be unbreakable, so record it for your trading, because if you violate it, you will see the statistical advantage vanish and therefore run the risk of burning your account.
Fourthly we must set a profit limit, stop trading when you feel satisfied. You must consider that greed is not good in trading, therefore you must know when the profits obtained are enough, remember that excessive movements in the market can play against you. In short, set a daily profit target, and once you have reached it, stop trading.
Finally, remember that trading is basically following a plan, not just trading. Keep in mind the importance of everything that surrounds the operation, it is as or more important than the operation itself, and if you manage to control these factors you will obviously get better results. Take into consideration the 4 limits that we must set ourselves, as they will mark the end of the trading session.
