What to do on a HIT???

[jbapinoy]

I was fishing yesterday with some buddy of mine. I'm using a 9' TICA TC2 with shimano baitrunner 4500B all of a sudden a got a hit two of my buddy were arguing. First one shouted at me YANK YOUR POLE!!! and the other one shouted LET THE FISH TAKE IT!!!. So here was I thinking I have my baitrunner with me I let the fish take my bait after like after 3 secs I set my hook but the fish throw up my bait. Which one is better yanking the pole on the first sign of a hit or let the fish take the bait before setting the hook. By the way I'm using chunk bait I know the techniques on eel fishing co'z I caught a few schoolies before on eel but on bait fishing I don't know which is the best or better.