Hi, I've heard on more than one occasion that you should treat trading like a buisness. With that idea in mind, I was wondering if any of you full time traders set out any kind of yearly profit targets. If so, do you focus on net targets (i.e. bring in 200K this year) or relative targets (i.e. 30% account growth). As well, I was wondering if any of you had more granular targets (monthly, weekly, daily). If so, does a really good (or bad) week/month/day modify your trading approach in any way? Cheers, Brandon
I try to be at least somewhat profitable every week, but the answer to this depends largely on your specific trading methodology. I have friends who are profitable every day, and others who are flat for months, then make their annual income in a couple of big trades. In my experience, setting long term objectives, whether percentage or dollar, is horribly counterproductive. What happens when you are flat after 6 months, and you now have to (or are tempted to) double your trading size or frequency to "catch up"? I have found that for myself, if I am consistently profitable, and use sound risk management, the profits take care of themselves, and I don't worry about specific goals. Jessie
start of quote In my experience, setting long term objectives, whether percentage or dollar, is horribly counterproductive. .... I have found that for myself, if I am consistently profitable, and use sound risk management, the profits take care of themselves, and I don't worry about specific goals. end of quote same experience! Nearly all my losses occured when I tried to "catch up"