Hey Guys, I was wondering if people set goals for themselves for each day as far as profit. I feel like everyday there is a time where I reach a level I would be happy at and either become sloppier or feel like I can take more risks because I am up this much. I know its probably a mental thing, but because its an expensive problem I am thinking of stopping once I reach a certain amount (I reach it about 80% of the days I trade). Do other people employ such tactics or do something else? Am I the only mentally weak person in ET? Thanks, r
First of all, only traders that should be using profit target goals are traders that are consistently profitable. Secondly, if your not consistently profitable then you fall into the group of traders that should be using goals based upon the ability to follow the trading plan whatever that may be. The above commentary is not aimed at you but to some that may read this thread. With that said, you said the following... If you know for fact you tend to give back your money to the market after you reach a particular profit goal and you have statistical proof such is occurring... I just can't imagine why you continue trading for the day after reaching your profit goal for the day. It's possible that your one of those traders that as soon as you reach your profit goals... You continue sitting there in front of your monitor watching your charts while knowing statistically that you will start losing your profits if you continue trading. You don't have control of your greed or you have an addiction to the market to always be involved in the market. Thus, you should setup a goal or reward system that as soon as you reach your profit goal for the day... Shut down your computer and go do something fun that's not trading related. If you can't learn how to do that...at least learn to reduce your position size dramatically if you continue trading that way the loses don't cut so deep into your profits. The latter suggestion is good for those that want to get better in their second half of trading sort'uv speak. Another solution is trade the second half via a simulator with your normal position size. Mark
rdm - if you find you consistently got sloppy after a certain point, then you need to stop. I personally trade the entire day b/c you simply do not know when the moves will come.
Yes. Dont cling to artificial techniques. When you are done trading, quit. The market does not behave differently because of your goals, profit targets, or stop losses. If it is a good trading day, that is often when you make a lot of your profits. Trendless or chaotic markets might hurt you. If you bailed on a really nice trend day, then why???