depends on many things 1.) there is a direct correlation between percent of winning trades and size of loss. so you win a lot, you lose bigger. if you win less often the profit is larger and the losses smaller, this is something you can't get away from. if you win more often you make less per trade but lose bigger when you do lose, i call it the silver bullet. 2.) there is no right or wrong answer you have to find your way and a risk tolerance that suits you and no one else. trading is a custom setup based on your own psyche. just know that testing the shit out of something helps gain confidence in knowing what to expect when things go wrong. 3.) focus on preserving capital to stay in the game while you sort thru your methods, don't gamble. have a reason for everything you do and keep a log of what works and what doesn't. i have a book of "absolutes" that i live by that have proven to always be true for me. it takes years don't let anyone tell you different, there are very few who are honest with themselves enough to make it.
Thank you MarkBrown for your comment. Yes, I am learning that finding a method that fits me and learning what fits me, is the most challenging. Yet, i still record trades and learn.
My stops loss are Always larger than profit targets per trade. And I always take high probability trades. I just have to win alot.
Hi SML, in periods I consider normal or high volatility, my targets vary trade to trade and are based on the stop size. (1.5x greater than stop). In low volatility it’s sort of a trailing method. I exit at a point where I consider momentum has shifted against me. On low-volatility, steady trend days, this method might see me enter at the open and exit at the close, catching a move that is several times larger than initial stop.
Hello imjohn, Thank you for the response. I track the following in my trading exiting in my trading 1. Fixed profit targets, 2. dynamic profit target based on what the market shows me 3. Average true range based on a few prior bars.