I have never had an appetite for trading, at least not intentionally. The wins I have had were by accident, not method.

However, I have read and studied how successful traders work. They often look for an entry point and an exit point on a trade before they buy it. They also calculate how much loss they are willing to accept before getting out of a position.

In other words, once they've done the homework, they trade. The rest is automatic. No watching. No emotion. They can walk away and know that they either made a good profit or lost very little when they return to their desk.

Poker is the same. Players will minimize losses and go for big wins. Losses are a part of the game, so they need to be budgeted.

This is why you see people only risking 2% of their money. If they lose, several times, they are still in the game. But, when they win, it's worthwhile. Money management is extremely important to stay in the game long-term.

It's amazing to watch how the pros do it. I admire them greatly.

Even in other investments, you need to be able to call you entry point, exit point, and how long you will stay invested. This is what distinguishes investors from speculators. Investors want their money back with earnings by a certain time so that they can move on to the next investment. Speculators have an open-ended profit and timeline.

Your friend's Mom is right. Hit the target and run to the next trade. There is never any shame in taking profit.

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