Say you set yourself a monthly target of $5k for the month. Once you hit that you'll close all or any shaky position and go home happy and think about next month. Is this a good strategy to control greed and risk so you won't turn your paper profit into a loss or force bonehead trades?
arbitrary limits just means you are trading your P&L rather than what the market is dictating. sounds a little silly doesnt it?
That's kind of what I thought, too, but then I was reading the tape reading thread the other day where they were talking about a style called "p&l" trading and was rather intrigued.....evidently some do it very well.
I set weekly and monthly goals, but its to stay motivated. I did the same thing when I was a runner. I signed up for races, even though I would never win. The race was a goal, and gave me daily motivation to train. My weekly and monthly goals are motivation to sit at my desk and do my research and trades every day. It helps me stay focused.
r u going to set a monthly target of $5K and leave an openended potential to lose during that month..suppose you make 10K one month, then lose 10K next month, if u dont put any target youre breakeven over 2 months, but if you put target, well, ur down 5K over 2 months
No, you have your usual stops in place. What I mean is try not to get too greedy on the upside and get consistent profit rather than going for home runs.
Getting consistent profits instead of trying for home runs comes from my stategy, not my weekly goals.
ur basically putting a monthly target but no "monthly stop", unlimited loss potential, but limited gain potential
Um no. I don't stop trading because of where me P&L is in relation to my goal. The goal is simply a bench mark. Sometimes I beat it, sometimes I don't.