Risk and Reward

On Tuesday, I had taken a breakdown in the Nifty.
The trade was to go short and cover at 4820 which was a pattern target. Since the market was closing, we exited at 4830.
A question was asked: why did we exit if the market remained weak. We should have carried the position overnight.

Here is my answer:

First, consider my rules. The rules have a profit target. We must follow our rules honestly.
Second, I could have waited for the next day since my target of 4820 was not achieved. To obtain another 10 points of rewards (4830 minus 4820) I was likely to incur significantly higher risk. The risk reward ratio was quite unfavorable.
Third, It is my perception hat we are entering a choppy market. If this is so, we will see lower close and higher open, then higher close and lower open. For this reason, it is best to trade with care.