mschey i don't know what could doing an earnings plan is in trading? we all take what the market give us period. you can ahve expoectations which can be dashed very fast to outline a plan to make x amount a day makes no sense becasue if the markets not giving no matter what you say ot beleive its not giving and if you put pressure on yourself to meet a spefic daily target you're going to ahve some huge downdays
Dr. Kiev recommends doing exactly this in his video, The Psychology of Risk (view free on the Nymex symposium site). He asserts that we are likely to achieve more by setting a goal and pushing ourselves to reach it, rather than drifting along with the attitude of "I'll take what it gives me". http://www.clicklive.com/NYMEX/symposium_2003/content_page.htm
First, let me start by suggesting that you create a business plan for 2006, and get going on it immediately. One thing holds true, you can't hit a target you don't aim for! Second, add a regular review period where you check your progress and make necessary adjustments to ensure your keeping on course. Finally, lighten up a little bit. There are very few absolutes in life and the markets. If you are only trading one strategy, one market, then you might have the problems associated with limited profit opportunities on some days, I don't have that problem.(Though this was a problem for me during my second full year of trading when what I was doing just wasn't working like it use to) My trading plan has many different strategies that take me from the pre-opg market through the close of the market. I just follow my game plan from opening to close. If one strategy is losing on the day, perhaps another is outperforming. One thing is certain, I have reduced the variance in my returns.
As a side note, I just ordered a few of Ari's books and have started to read them. If Steve Cohen is using his strategies to coach his traders then I better start implementing them into my game plan if I want to remain competitive. Don't you think it is wise to emulate the best if you want to be the best trader you can be?
Ari Kiew in his book "Hedge Fund Masters - How Top Hedge Fund Traders Set Goals, Overcome Barriers, and Achieve Peak Performance" do suggest setting daily goals and monitoring the progress of an average against the goals, in order to analyse for improvements. I think that should be useful.
yes. but theres nothing to say you dont paper trade for the rest of the day to push yourself to double the goal on a consistent basis over time.
Yeah, if you have a fixation on trading from doing too much ET but don't know what to look at on your screen.
yes - your goal is no different than any other aspect of your plan (entry, stop, exit, etc.). it requires disciplined attention. if your goal is X dollars or points or ticks or whatever per day, unless you specifiy it as part of your goal, that does not mean you have to trade all day. paper/sim trade your markets to monitor for additional setups, but live trading beyond a goal is (to me) no different than adjusting a stop to allow more heat. if you find you are reaching your goal too quickly or easily, it will probably be best to re-evaluate your goal. a goal needs to be realistic and attainable, but it doesn't need to be TOO attainable. i think many people oppose daily goals because you can't truly control what the market offers and quitting once a goal is reached means you exclude potentially profitable trade setups. both concerns are valid. however, i'm answering from the perspective of IF you set a daily goal not SHOULD you set a daily goal. hth take care omni