Trouble with Setting Goals

Discussion in 'Psychology' started by Flashboy, Jun 8, 2005.

  1. yes OldTRader I have posted this many times before and do still suffer from it...

    I've come up with the 1pt. as just an average daily number I feel I can achieve.. And what I do is use that 1 pt. to project possible earning potential (see spreadsheet attached)..

    I believe your statement regarding entry points is hitting the nail on the head.. cause I tend to take profits prematurely more often when I have to wait through a little drawdown or wait an extended period of time for the market to go my way.. then once it finally does.. I get anxious and am ready to book my profits..

    I guess I continue to post these problems not so much looking for the answer but I like to put it in writing and go over it so I can continue to work on improving myself..
     
    #11     Jun 9, 2005
  2. ^^^^^^^
    1] Flashboy first off sounds like you are improving ;
    you hit your goal,
    and your nickname ''Flashboy'' may help you meet that goal.

    2] Prefer NYSE stocks & occasional derivatives myself;
    but you are in a liquid contract[CME Globex or Eurex-US].

    3]CME, Eurex-US, Esignal has daily data [end of day on your contract] and when I am trading something,
    & even before I am trading something, record thier data.

    4]True ,its easier writitten than done
    :D ;
    but if you record enough end of data,& hi-lo, you may see some patterns.

    5] And if you see enough patterns, one of these months, may want to plan with a trailing stop to aim for more than a point;
    especially since your contract may occasionaly go down 10 points, or go up more than 10 points, before end of day.

    Wisdom is the principal thing.:cool:
     
    #12     Jun 10, 2005
  3. gnome

    gnome

    The only goals a trader should have:
    a. Get better at identifying trade setups.
    b. Get better at playing setups.
    c. Exercise proper stop discipline.

    Anything else is just mental masturbation.
     
    #13     Jun 10, 2005
  4. Very true..

    And I'm trying to get to this point.. but after being a consistent loser for so long its very hard to not cash in when you've set a goal and see that you've met it for the day..

    Hopefully I can get to where I just concentrate on proper trading and not $$$
     
    #14     Jun 10, 2005
  5. cosmic

    cosmic

    flashboy - I wonder if you have any other rather technical exit condition that could trigger you out & maybe get you more out of a trending situation.

    also I think having a clear daily goal is beneficial, but you may bypass limiting yourself with this if you only take the most conservative trades after hitting it early.

    my best,
    cosmic
     
    #15     Jun 10, 2005
  6. gnome

    gnome

    Even when the market has great potential, it gives traders every opportunity to turn a potential big winner into a small one.

    Focusing on the money you've made is one of the Devil's tools.
     
    #16     Jun 10, 2005
  7. buylo

    buylo

    Flash,

    I, too find it distracting to set monetary daily goals. I try to focus on my signals and what the market is doing (i.e. THE PLAN).

    If you have a daily $$$ goal and the market is shite, then why try to make the $$$ goal. If you dont make it for the day, I found that the stress carries over to the next day because you are now trading to make yesterdays $$$ AND todays $$$. It can then steamroll very quickly.

    Good trading is not necessarily making money everyday. Good trading is taking the market for all its worth when your plan gives you the signals. Then, also, staying OUT when the market is not tradable and not giving you the opportunity to make $$$.

    Best of Luck!
     
    #17     Jun 10, 2005
  8. 1 point a day huh?

    I would be pissing in my pants if I hit 90 cents around (3%) in a $30 stock.

    Usually I'd be piss happy for 30 cents (1%) gain a day


    I Do know I'm not a great trader though, just an ok one :)

    You guys doing 1 point a day on google?
     
    #18     Jun 10, 2005
  9. No.. The Mini Russel Index..

    1pt. = $100 per contract
     
    #19     Jun 11, 2005
  10. When I started trading the indexes it was the nq in 1999, my trades consisted of trading 5 contracts and exiting with an 8 tick gain or closing with a 4.5 tick loss.

    I did ok with this as I could win greater than 50% of the time, but I sure did leave a lot of profits on the table, and I also did some poor trades trying to re-enter that exited winner. Around this time I met a trader who I now work for, a trader who scaled out of trades and who also would add-on to winning trades under certain conditions.

    I don't have to tell you how it works, you mentioned similar experiences; if you hold on and try to scale you do it when it was better to exit, but if you go flat you do it when it is better to have held the trade. Have you ever wondered how the market knew exactly what you are doing :)

    What was suggested to me, which is what came to work for me in being able to make this adjustment, was to make the scaling decision on the times where the open trade was also consistent with what should be the greatest strengths of the trading method I was using. So if I was short, and it was also a strong negative day and a day that kept making lower lows, I would scale out of those trades. But if I happened to have taken a buy on that same day, because even though it was a counter trade I still had a trade setup that I was satisfied with taking, I would exit that trade as soon as my profit target was hit.

    Maybe some process like this will help you in increasing your trade profits, if you have specific reasons for holding some of the trades that you take.
     
    #20     Jun 11, 2005