This is probably the biggest misconception on these boards: that trading for targets of 1 or 2 points per day is somehow the easiest way to start. NOTHING COULD BE FURTHER FROM THE TRUTH. From that standpoint, the exposure of your results and therefore your emotions to pure noise is at a maximum, and that makes progress very difficult when you can't tell what exactly is helping or hurting your trading (SP makes how many 1.5-2 pt moves in a day? How do you distinguish which moves to take, when you see them occurring 10 times an hour? etc) Not to mention the percentage off the top for commissions. You are much better off having as large a target as possible, whether intraday or swing. What if you could only trade when you knew you had a good chance of taking 10 SP points in a single trade? The opportunities aren't as frequent, but at least it would put some rigor in your standards for initiating a trade: you'd most probably need to look for trend days, identifying what early clues the morning may have in clueing you in to a possible trend day, knowing which days have a high likelihood of NOT being trend days -- etc etc etc. You will have a much greater chance of averaging 1.5-2 pts/day in this manner, instead of trying to make 2 pts each day or setting some daily equity target -- which btw, is one of the worst things you can do and usually always leads to blowout. I remember when I used to set targets for myself with my calculator, how good it made me feel to know that if I just made so-and-so percent a week (3% sounded so easy) I'd have life on easy street in no time. And it always ended in disaster. So I hope you re-think your plan, and why you have this certain target and time-frame to begin with. In any event, if you seriously needed to turn 1k into 13k in a few months then you should be trading metals not indices . . . JK Good luck!
I understand your objective as it is mine as well. And it IS do-able. Maybe not in 1 or 2 trades but it can be done. I do it, my mentor friend does it. The trick is to develop solid indicators and a system that works. The emini SP makes those kinds of moves everyday. Once you've gotten your pts (I actually go for 2.5), get out and stay out. I think people who go for bigger gains are the ones that ultimately lose. Sure some days you feel in the zone and want to continue. If you have a system that works consistantly, okay then do it. But most times its best to take your profit and walk away. Why tempt fate.
cdbern, I disagree with the common thinking that you should stop when you get your 2 points. What if the good moves happen on Monday and the rest of the days are crap? Then you would have given up the opportunity of making a lot Monday and could get chopped up the remainding 4 days. I agree with Illiquid's comments. You should trade when probabilities are good and stop when they're not. I have a daily goal of 5pts. Some might think it's too high. But I'm not saying I always hit it. I just want to be motivated to go for more when possible. Somedays if after 5 trades I only have 1pt I realize it may be unattainable and I stop. Flashboy, if you read your own comments you'll see what areas you need to work on. Eg. "My entry criteria is somewhat subjective.." So fix those first or you might blow out.
voodster, You make a good point about not restricting yourself to 2 points. That remark is geared toward the undisciplined trader or one like Flash that has a hit or miss approach. That's why I stated it would be okay to continue beyond 2 points if you had a system the was consistant. It seems to me that Flash's system is consistantly flawed. Therefore he would do best to stick to 2 points and not tempt fate. Could be as the morning/day progresses either his confidence becomes overinflated or his self esteem has been shattered.
Took a few days off.. Starting trading again today.. Net loss = $86.00 Still lack discipline.. You'll see the 2nd trade on the chart should not have been taken.. Actually I shorted there and my system calls for going long under normal circumsatances but with the top tails that formed prior to my entry.. is criteria I have to not take those pullbacks.. I was trying to anticipate a market turn. I was doing fine all day.. patient.. took a trade earlier and exited properly with market being in a trading range and not moving.. I still refuse to give up just yet.. If I don't change my trading habits I will be forced to though.. Hope everyone's trading is doing well..
Flashboy, your long looked good. I guess you got impatient and bailed before it ran up. I've done that many times. It happens. I think you need to address that short you did. Looks impulsive. Like you said you weren't sure why you did it. I do, a single candle started moving down and your fears kicked in and convinced you to get short quickly. Those fears were the type that makes you afraid you'll miss the big drop. The drop didn't come and it wiped away your win from the trade that was actually part of your plan. Now when you look at the chart I bet you can't even see why you got in. It'll happen everytime you let down your guard and enter because you "think" something will happen. Follow your rules, buy the bounce off your MA like you're supposed to. It's better to realize the mistakes FAST coz they won't go away by themselves.
Nothing wrong with that short, 'cept like you said, not in your plan. (I shorted at 98-99 area twice, first time for profit, second for a loss.) B/c it wasn't in your plan, you got in a couple points late. One thing you should put in your rules are "early bail criteria". This way you have something concrete to fall back on during that all important initial phase. For me I always start out trailing 1 point behind the last closed bar on the 5 min chart, for 1/2 my position. A great trader ES once told me, his entries are very discretionary, while his exits conform to strict rules.