After careful consideration, I have decided to kick off another year with a new target. Percentage-wise, it is not a lot different from the target for last year Taking 320K to 3.5million by Year End 2009, which was not achieved. The slow-down in volatility towards the end of last year made me think I should perhaps bring down expecations for this year, as it looks likely to be a low volatility one. However, I believe there are enough opportunities even in a slow year to aim as high as this. My second-half performance last year works out to an average weekly rate of 3.3% compounded. My target this year is for 50 weeks at a compound rate of 4.7% per week. I am putting a lot of stuff on automation including minimum entry criteria for my discretionary trades, and will ramp up risk taken as the account buffer grows. Once again, my expectation is for a maximum draw-down of 40% (high to low) while trying to hit this target. There will be more overnight/swing-type option trading positions this year: I feel the need to close positions at end of day has limited upside on several occasions. However, those longer timeframes should be reserved for trades with better upside potential. You are welcome to enjoy the ride.
Good luck. Since I haven't looked at your previous journals, would you mind giving a brief summary of your trading? What you trade, time frame, style, hold time, etc. Thanks,
I trade stocks and stock options (directional calls/puts - long only). My holding time-frame has been mainly intra-day, but this year I am looking at more swing-style plays (1 day - 2 weeks). Style? Anything I think does make money: momentum, mean-reversion, news plays etc.
i'm not sure what the point of having an unrealistic goal like this. you never met any of your prior years' goals, and i'm gonna go out on a limb now and say you won't meet this one. are these wild goals intended to generate a lot of buzz? i guess "taking 410k to 575k by end of 2010" doesn't sound as interesting.
Why strive for less than my worst percentage performance in the last 5 years? Sorry, I strive to beat my best record!
One recently recalled a quote from James Cameron discussing the movie Avatar, which stated, "If you set your goals ridiculously high and it's a failure, you will fail above everyone else's successes." I don't care if the goal is 2 million, 4 or 8, I'm just looking forward to this thread, the drawdowns and struggles and the success that usually follows them. Happy trading and good luck accomplishing 4 million
Shooting for very high goals has some advantages as well as disadvantages. In trading, having a high goal is good, IMO unless it causes you to take unsound risks and works against your performance.