Daily Profit Goal

Discussion in 'Trading' started by Jdesey, Jul 25, 2024.

  1. It's an insanely bad strategy. Better off with a weekly goal. Not all days are equal. Super opportunistic day like today, you would be foolish to stop at a target vs a choppy day where you will get chopped out. You will guarantee that you blow up and then all of your profit will be wasted when you have a day where the market goes against you badly.
     
    #11     Jul 25, 2024
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  2. rb7

    rb7

    How is that a problem?
    Being profitable 66% of the time on a daily basis is a problem?
    Is being profitable each day is the definition of consistency?

    I think that's how wannabee traders become delusional. They want to make money each day, all the time, and get rich fast.

    I define a profitable trader as someone able to make money consistency, over a long period of time. Making money each and every day for a long period of time is not something achievable imo.
     
    #12     Jul 25, 2024
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  3. hilmy83

    hilmy83

    Easy to say a trend happened after the fact. Meanwhile you brain shut out the memories of failed setups you had trying to catch that big move.
     
    #13     Jul 25, 2024
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  4. Coin Flip

    Coin Flip

    Tom Hougaard put it most brilliantly when he asked his audience: You have two traders, one is down for the day, and one is up for the day. If you had to bet, which trader do you think is the one that would keep on trading for the day?

    Everyone sheepishly knew the answer.
     
    #14     Jul 25, 2024
  5. schizo

    schizo

    Do you have trouble understanding English? What you're saying has absolutely no bearing on what I said. What I meant by consistency was making a consistent amount each day. Consider the following examples.

    Trader A:
    Day 1: $1000
    Day 2: $250
    Day 3: -$500
    Day 4: $500
    Day 5: -$1500

    Trader B:
    Day 1: $500
    Day 2: $550
    Day 3: $420
    Day 4: $425
    Day 5: $475

    Considering what I wrote above, Trader A would not be a consistent trader, whereas Trader B would be a consistent trader. That said, who would be an ideal candidate to stop trading after achieving a daily profit target? Obviously, Trader B. So what I was asking the OP in my previous comment was are you more close to Trader A or Trader B? If you're Trader A, the goal of stopping after making $500 would not be suitable because you're currently all over the map. But, on the other hand, if you're more like Trader B, then you're a good fit.

    And please stop arguing for the sake of argument, for crying out loud.
     
    #15     Jul 25, 2024
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  6. SunTrader

    SunTrader

    Agree with those who say shut down if you've lost X, keep trading if you've made Y.

    Anyone who stops after reaching a " daily profit target" either

    a) doesn't need the money

    b) doesn't really have an edge and gets lucky on certain days

    c) is ignoring the simple math that winning days have to compensate for the losing ones, besides accumulate over the long run.

    d) is just putting it all on red or black .... one trading account after another
     
    #16     Jul 25, 2024
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  7. An alternative could be to make sure a $500 day doesn’t go red. So, continue trading, but stop if you’re down to $250.

    $500 is an arbitrary figure. Go for green days, but don’t limit your upside.

    Personally, I prefer to stop trading when I’ve exploited a good chunk of the day OR if I perceive that the day does not have much more to offer. Or if I made some type of outlier return.
     
    #17     Jul 25, 2024
  8. The OP can do whatever, but I guarantee it won't work. Very few traders that can survive trying to grind it out. You need to have a big win every now and then in order to survive so it can eat away losses. You also have to know when the real good opportunities come along. Not everyday is equal. Take a day like April 4th, where the Q's tanked into the close. If you had 0DTE puts you could have made bank, but you would have stopped at $500. Then you get chopped away the next day.

    Set a weekly goal, it's way better. Trust me. And with the weekly goal, secure a win and then have some money you can play with to get further upside, but also protect your weekly gains. That is how you can grown an account. If you can rip of like 10+ weekly gains in a row it will make a huge difference. This day to day stuff is guaranteed to not work. Try to win the week, not the day.

    Something like this is most likely.

    Day1: 500
    Day 2: 500
    Day 3: 500
    Day 4: -150
    Day 5: -300
    Day 6: 500
    Day 7: -750
    Day 8: -500
    Day 9: -750
    Day 10: 500

    2 weeks go by and you end up close to BE if you're lucky.
     
    #18     Jul 25, 2024
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  9. poopy

    poopy


    Have you been tested?
     
    #19     Jul 25, 2024
  10. Few thing are more uniquely personal that a persons trading plan. One size does not fit some, much less all. Applying the theory of cut your losses short and let your winners run, I don't have a daily profit target but do use a daily loss limit to minimize the damage on tight range choppy days.
     
    #20     Jul 25, 2024