[sdoma]

I'm wondering if any of you use daily profit goals or downsides when you trade. For example, are you done after you lose $500, or take in $1000?

Also, what do you consider profitable?

[nakachalet]

Originally Posted by sdoma »

I'm wondering if any of you use daily profit goals or downsides when you trade. For example, are you done after you lose $500, or take in $1000?

Also, what do you consider profitable?

profit target should depend entirely on capital at risk.

if a a trader invests 5k usd in a trading acct, would it be reasonable to expect a 10% return each trading session (500 usd).... would it or won't it be a reasonable expectation?

for those new to trading, it would be utterly illogical and impractical to expect such a high return.

however, in the hand of an experienced trader, the answer would be much more inconclusive. it is much more likely that the experienced trader could accomplish such feat, perhaps not consistently, but it is not entirely impossible.

on the flip side, for new traders to lose more than 2% per session is almost catastrophic in terms of recovery. everyone knows less than 10% of those trading are profitable.

so if you are not sure yet, go slow and go very slowly.... nowadays there are many brokerage companies who offer free trial, some with live signal, for those new to trading to practise....

for what it is worth..... if you are not already experienced in trading.... stay completely away from trading currencies.... in spite of many ads enticing many to seek the quick profit.... do not even go near it.... it will eat you up alive....

in taking profit, a trader should only follow his/her own trading plan.... if your sound and well thought out trading plan dictates whatever amount.... that is the only way that you should trade.... if any portion of your trading does not work out after several sessions.... modify your plans to accommodate your new discovery....

however, never change your trading plan in the middle of your trade.... more succinctly.... never allow your elusive emotions to interfere with your trading.... K? wishing everyone another profitable session today....

[Tams]

Originally Posted by sdoma »

I'm wondering if any of you use daily profit goals or downsides when you trade. For example, are you done after you lose $500, or take in $1000?

Also, what do you consider profitable?

worst thing you can do

[Tams]

Originally Posted by sdoma »

I'm wondering if any of you use daily profit goals or downsides when you trade. For example, are you done after you lose $500, or take in $1000?

Also, what do you consider profitable?

the market is dynamic

take what the market can give you

[zdo]

Using ‘Daily’ profit goals and risks is indicative of ‘trading syschology’ issues. The issue will likely be further compounded because those limits are usually significantly out of line with the way one’s particular system should be played.

Per trade profit goals and risks are TOTALLY system dependent. It can’t be generalized. Some systems are best traded dynamically, “taking what the mkt gives you” as Tams says. Others have best results with targets.
Know your system. Test and know your odds. You don’t have to play your odds with extreme accuracy, just keep it in bounds… just like every tennis winning shot doesn’t have to be exactly on the line… hth

[Predictor]

You should factor into how much you have of your account at risk. Yes, it does also make sense to use daily stop losses. But they could, also, be based on account risk and not your own feeling to that regard.

In general, with a tiny account, risk should be reduced at the 25% of account level. It also makes sense to stop when ahead if you can't trade overnight because you have less time remaining to recover from any losses but only in terms of closed trades.
.
These types of considerations are a bit advanced in that focusing on them can be counterproductive for the beginner but are nonetheless important.

It is worthwhile to consider:

How much time is left in the game (early game, mid game, late game) (i.e day)
% of capital at risk total
closed trade profits
open trade profits
-----

Now, let's say you are a momentum trader and you are up $250 on a $1,000 account (like I was today) and you have a total of around $500 at risk. In this case, you have 25% at risk to break even and so you should start reducing your risk.

Many successful traders just trade the open and morning session. I also do better with morning session. Trading late in day has many pitfalls, namely, limited time to recover and more fakeouts. It also depends on your style. You shouldn't set an upper limit per se but you should watch your total account risk and set a lower limit.

If you aren't trading a hard system then it likewise makes sense to listen to yourself when you are losing and take time off, whether that be a day or a week. Most professional gamblers will step away when losing. Push harder when winning and take it easy when losing.

A quantitative example might be that overbought indicators tend to get stuck when market trends strongly. Maybe it is a profitable indicator for you, if you can manage to avoid the bad losses, i.e don't keep fighting when it quits working!

Originally Posted by sdoma »

I'm wondering if any of you use daily profit goals or downsides when you trade. For example, are you done after you lose $500, or take in $1000?

Also, what do you consider profitable?

[nakachalet]

Originally Posted by light65536 »

You should factor into how much you have of your account at risk. Yes, it does also make sense to use daily stop losses. But they could, also, be based on account risk and not your own feeling to that regard.

In general, with a tiny account, risk should be reduced at the 25% of account level. It also makes sense to stop when ahead if you can't trade overnight because you have less time remaining to recover from any losses but only in terms of closed trades.
.
These types of considerations are a bit advanced in that focusing on them can be counterproductive for the beginner but are nonetheless important.

It is worthwhile to consider:

How much time is left in the game (early game, mid game, late game) (i.e day)
% of capital at risk total
closed trade profits
open trade profits
-----

Now, let's say you are a momentum trader and you are up $250 on a $1,000 account (like I was today) and you have a total of around $500 at risk. In this case, you have 25% at risk to break even and so you should start reducing your risk.

Many successful traders just trade the open and morning session. I also do better with morning session. Trading late in day has many pitfalls, namely, limited time to recover and more fakeouts. It also depends on your style. You shouldn't set an upper limit per se but you should watch your total account risk and set a lower limit.

If you aren't trading a hard system then it likewise makes sense to listen to yourself when you are losing and take time off, whether that be a day or a week. Most professional gamblers will step away when losing. Push harder when winning and take it easy when losing.

A quantitative example might be that overbought indicators tend to get stuck when market trends strongly. Maybe it is a profitable indicator for you, if you can manage to avoid the bad losses, i.e don't keep fighting when it quits working!

may i pls ask a few questions in reference to your post....?

1--Now, let's say you are a momentum trader and you are up $250 on a $1,000 account (like I was today)

excuse me, would you be kind enough to explain just which trader or trading group that would trade on a 1k $ acct....?

and if the trader is fortunate enough to see his trading acct increased by 250$ or 25% in just one session.... would not immediately protect that profit....?

i hope you are not selling dreams.... to dreamers.... here, are you....?

2--Now, let's say you are a momentum trader and you are up $250 on a $1,000 account (like I was today) and you have a total of around $500 at risk.

again, it annoys me excruciatingly to hear and see supposedly experienced traders coming out in print stating irresponsible statements such as what you just claimed here that.... you have a total of around 500$ at risk....

which traders in their right frame of mind.... would risk 500$ out of their trading acct of 1,000$.... in any one single trade....

excuse me, my friendly trader.... there is no experienced trader who would trade in any market or in any commodity and/or under any circumstances.... and would put out 50% (500 out of 1k) of his entire capital at risk in any one single trading session....

i do hope that there were some typo errors some where....

3-Many successful traders just trade the open and morning session. I also do better with morning session. Trading late in day has many pitfalls, namely, limited time to recover and more fakeouts.

there is just no statistical evidence to support your assumption here either that morning session is more productive or whatever.... it is all heresy to say the least....

it is however true that most seasoned and profitable traders would avoid the opening and closing minutes.... because either or both of those sessions are very erratic and abnormal in the eyes of many experienced traders....

just for your information.... the specialists at the pits will be willing to take your orders and fill them up just as expeditiously regardless of the trading hours.... try it....

pls kindly do not regard this as a personal attack, ok? it is just my poor reaction to something that is contrary to profitable trading assumptions and practices.... that's all.... ok? wishing you and everyone another profitable trading session....

[Predictor]

This is all based on my own trading. Yes, I trade at NADEX and have $1,000 in it now. I'm trading a $3,000 model account though. It was me who had the $250-$260 today and ended losing $260! It was not a good feeling. You can for sure open a 1k account (or a 3k account) and trade with good leverage. All risk is predefined unlike futures.

Everything is based on my experience. I tend to trade the open because I lose more in the evening. One thing is that the NADEX contracts expire. A lot of people who trade futures also don't have margin for overnight exposure. If you enter a trade at 2:00 PM then you only have 1 hour for it to work. If it goes immediately against you then there isn't time for it to recover. Futures market is @ 1315 right now. If my contract had not expired, I'd be break even.

I can tell you learning to trade the morning session is the most profitable period for me. Trading the open is how professionals make their living, see Bella. The morning session is NOT the same as just any other time in the market.

To make a meaningful return from a tiny account, you can't use the same rules that would be used in a larger account. 2% of 3000 is $60. That's a trivial amount. Risking about 8% to 10% per trade is required and reasonable (it was 8% loss of my account but 25% of the margin I have in the account). Of course, this is very difficult. Only trade with capital you can afford to lose.

Originally Posted by nakachalet »

may i pls ask a few questions in reference to your post....?

1--Now, let's say you are a momentum trader and you are up $250 on a $1,000 account (like I was today)

excuse me, would you be kind enough to explain just which trader or trading group that would trade on a 1k $ acct....?

and if the trader is fortunate enough to see his trading acct increased by 250$ or 25% in just one session.... would not immediately protect that profit....?

i hope you are not selling dreams.... to dreamers.... here, are you....?

2--Now, let's say you are a momentum trader and you are up $250 on a $1,000 account (like I was today) and you have a total of around $500 at risk.

again, it annoys me excruciatingly to hear and see supposedly experienced traders coming out in print stating irresponsible statements such as what you just claimed here that.... you have a total of around 500$ at risk....

which traders in their right frame of mind.... would risk 500$ out of their trading acct of 1,000$.... in any one single trade....

excuse me, my friendly trader.... there is no experienced trader who would trade in any market or in any commodity and/or under any circumstances.... and would put out 50% (500 out of 1k) of his entire capital at risk in any one single trading session....

i do hope that there were some typo errors some where....

3-Many successful traders just trade the open and morning session. I also do better with morning session. Trading late in day has many pitfalls, namely, limited time to recover and more fakeouts.

there is just no statistical evidence to support your assumption here either that morning session is more productive or whatever.... it is all heresy to say the least....

it is however true that most seasoned and profitable traders would avoid the opening and closing minutes.... because either or both of those sessions are very erratic and abnormal in the eyes of many experienced traders....

just for your information.... the specialists at the pits will be willing to take your orders and fill them up just as expeditiously regardless of the trading hours.... try it....

pls kindly do not regard this as a personal attack, ok? it is just my poor reaction to something that is contrary to profitable trading assumptions and practices.... that's all.... ok? wishing you and everyone another profitable trading session....