There are as many arguments for, as there are against, in what you asked.

There are also two distinct and very different aspects of trading involved in this:

1) Technical analysis
2) Trading psychology

We need to blend these two together sensibly and logically if we are ever to have a chance in making money at trading. No matter how good we are in our technical skills, once we have our money "on the line" (and the more money - the greater the STRESS and pressure), our emotions, greed and fear, kick in and take over control of our trade.

Remembering the lurker who PM'd me saying something like "Assuming I have my emotions under control.......", Yeah, right! BUT it CAN be done but you then have to draw on two other aspects of trading psychology - patience and discipline.

This is why I keep repeating ad infinitum, success and making money in trading is 90% trading psychology.

Therefore, my answer to this will always be from the trading psychology aspect BECAUSE we have to keep our emotions, specifically greed and fear, under control as best we can.

The best way I know to do this is through a TRADING PLAN

You PLAN THE TRADE and then TRADE THE PLAN.

If you do this, you will ALWAYS keep your emotions in check and away from any decision making.

There are, however, provisos in this:

You must have your $/pip not only at your M % risk level but also at YOUR EMOTIONAL TOLERANCE LEVEL. It is no good having a huge trading account which allows you to trade $10/pip contracts if you are a huge EMOTIONAL BAG OF NERVES during the trade. Reduce your $/pip to a level that you feel comfortable with WHEN YOU LOSE.

You must always define your RISK (LOSING) before even thinking about profits. Forget about thinking (and dreaming) how much you will win. Instead, think and ACCEPT how much you will LOSE.
Forget about profits - when you are CONSISTENT over a long period of time (at the very least 1 year), your profits will take care of themselves.

So, let's go ever a typical scenario:

You see and recognise PASR, so you want to make a trade.

FIRST - where does my SL go? How much will I LOSE if this goes against me? Do I ACCEPT the RISK (LOSS)?

If Yes, next step. If NO - reduce the $/pip until you ACCEPT the RISK(LOSS) or DO NOT TAKE THE TRADE.

This is CRITICAL and VERY IMPORTANT - you have to be VERY HONEST with yourself here - you MUST be able to say to yourself

"THIS IS THE RISK I AM PREPARED TO TAKE ON THIS TRADE AND I WILL UNCONDITIONALLY ACCEPT THAT IT MAY BE A 100% LOSS"

If you cannot do this then YOU DO NOT TRADE!

SECOND (and only after accepting the RISK(LOSING)), where do I take PROFIT?

As discussed in an earlier post, put on 3 contracts and take PROFITS at either the first and second levels of S & R as appropriate or in increments of 50 pips - which ever polishes your knob! On the last contract, you trail this behind a suitable level which you are comfortable with UNTIL you are either stopped out or you see a PASR REVERSAL bar

So, this is now YOUR PLAN

THIRD - Do I believe in my PLAN? Do I have 100% absolute faith in my PLAN?

If the answer to this is NO - make a NEW PLAN
Do NOT trade until you UNCONDITIONALLY ACCEPT YOUR PLAN

FOURTH - Plan accepted so place trades. Enter SL and TP levels

FIFTH - Trade Management - You are trading the Daily time frame so no need to check your charts UNTIL after 5pm EST - NY close. -right, Dan?

IF you have been HONEST WITH YOURSELF and accepted YOUR PLAN then there is NOTHING TO DO!

You will either be stopped out for a LOSS - which you have already accepted and is no longer a concern for you

OR

You have to start taking PROFITS

There is NOTHING ELSE FOR YOU TO DO

"Ah, but what if something happens and I see the trade going against me, what then?" I hear our high school student say.

FIRST - YOU SHOULD NOT BE MONITORING PROGRESS DURING THE DAY ON A DAILY CHART.

If you are doing this then YOU STILL HAVE THE MENTALITY OF A SHORT TERM LOSING TRADER. You must GET SERIOUS and CHANGE YOUR TRADING STYLE.

SECOND - IF YOU ASKED THIS QUESTION THEN YOU DO NOT BELIEVE IN YOUR PLAN and VERY, VERY IMPORTANT - YOU HAVE CHEATED YOURSELF - YOU HAVE LIED TO YOURSELF!

YOU EITHER BELIEVE IN YOUR PLAN - OR YOU DON'T - it really is that simple.

So, my short answer is: