entry/exit strategies: two schools of thought

School 1: Cut losing trades short, let winning trades run

1. Set close stop-loss points, and distant take-profit points (or take profit only upon pre-set exit signals)
2. Either a) high percentage of failed trades or b) very few trades (ie clearly defined entry signals)
3. Less emotion involved, since there won't be any large running losses to worry about. But many failed trades may raise questions about chosen strategy

School 2: Take profits consistently

1. Set close take-profit points, and distant (or no) stop-loss points
2. Allows dollar-cost averaging (enter more trades when the price goes against you, in anticipation of a reversal. In the most extreme case, a Martingale strategy can be applied, where the size of each subsequent trade is enough to cover all preceding losses in event of a reversal)
3. Account statement will always look good, since losses are rarely realized on paper (ideally)
4. Emotionally, running balance may be cause for concern. Since profitable positions are closed quickly, open positions will more often than not be in the red.
5. Eventually, a Black Swan event will come along, which may ruin the entire account

Any other schools?