arigoldman posted: I don't have a daily target. Sometimes I don't trade for a month and sometimes I trade every day. It depends on the market.
Yup, I concur. This seems to be the most sensible answer since the market can be pretty unpredictable, especially within the last few months or so. I have a monthly goal of just 'staying in the green' as a minimum requirement, which usually averages at least a solid 200+ pips.
I do not have daily target neither. for a simple reason, if you are in a 3% profit trade and the trend shows strengthening, why should you cut this position because you had 3%? Sometimes you ll have very good days, sometimes you are not. Stop trading in the middle of a good day does not seem the best choice for me. I have an 'average' 10% monthly target ( 'currently at an average of 6% ...). Sometimes i ll loose 8% sometimes i ll make 26% . This number is just a guideline
A good daily target is around 3% profit and then an equity stop on 1% profit after that. If the trading suddenly happen to go against you, then there is still enough profit to end the trading day in a positive way. How much this is in pips is of no concern as long as the positive percentage is upheld against the finale balance of the day. More ideas on this way of trading can be had by searching on google on the RMM Robot.
AlphaInfinity, if you do not have a daily target maybe a weekly one is more appropriate according to your trading system. It is definitely very important to have some kind of a goal setup so the EA or the cBot (depending on the platform used) can be customized within the prefered goal frame. I will agree with you that a daily setup is very uncertain and it will fluctuate but a weekly one or even a monthly one can be more accurate to use depending on the strategy at place. There can also be several strategies like one weekly and one monthly intervened to give a more solid protection in the long run of the trading account.
personnally, I think target return is not the meat of the performance. What is very important to me is the expected return per trade: (% loosers X average gain) - (% loosers X average losses) . So what I want is to maximize my percentage of winners and maximize my ratio winners/ loosers. Imagine to have a nice profit in a nice trend , you d better keep the trade evventhough you hit your target. Also imaging you can't reach your target for a while and this happen a lot, you will feel bad and start to deviate from your system. Also, inspite of targeting a certain return you will more look for quaility trade which is the best thing you can do for yourself in the long term. Daily, weekly, monthly target do not get the big picture. The winning rate and the winners/looser ratio do.
For years I wasn't using any trading philosophy but my own. I tried and bought several methodologies or trading system programs, but was using a 10 pip goal for a trade--and this led to moving my stop to protect those 10 pips too soon on many trades. Then I saw a chart that proved scalping for 10 pips was a losing proposition, even at 60% winning trades. I realized I had to change my strategy.
I now have a goal of at least 50 pips per trade and have bought into a trading method that helps me discern the market moves for the day. It also provides a feed for the market movement of the dollar. Since so many currencies play off the dollar's movement, that feed alone gives me important information. I'm a long term trader now in overall strategy but am willing to take/protect a daily profit as a tactical play.
My daily goal is a minimum of 100 pips per day. As I have become more adept with my new trading system, the average daily result is higher. For the last 18 months I have averaged about 3500 pips per month.
My advice is that you have to find a system that works so that you don't settle for the loser's game of setting your trade goals too small.
alexforex007 posted: In my humble opinion, I dont think it is a good idea to set a daily, weekly or monthly target, because you may be forced to take trades that may not fill your trading parameters or strategy.
I agree with you,only freshman make short term target,most of them will be washed out in one year. in the forex market, in general the more you trade, the quicker you become a losser.
So true! Every time I try to set daily goals for myself I end up taking a loss.
For me, it's all about patience. I keep my trading platform (fxTrade) on a separate monitor so I can do other things (work, watch Netflix) on my main computer screen. Sometimes 4 opportunities will appear in a day, sometimes none for two days.
I really appreciate the number crunching this site does because when I try to keep track of my numbers manually, I start getting obsessive and then start making mistakes.
I try to keep reminding myself of some advice I read years ago: 'It's a lot easier to avoid getting into a bad trade than it is to try to get out of one.'
Just curious about how you all set targets. I personally try to make 2% per day with minimal risk.
How do you all set your targets?? I know some people may set goals based on number of pips made and others may use percentages, I know this would also depend on the lot sizes used plus the size of the account.
Hoping to hear what works for you all.[/quote
Interesting to read about the various opinions. A target is like a suicide - I never use a target and don't condone my pupils setting a target - Reason? When you reach the end of your day and the target is no where in sight - whether you believe or not, but many times you will see trades that look like they will just help you obtain your target, but there is in fact no safe entry it was the need to find a trade that made you believe that there is in fact a trade. This trade was caused by force of circumstances which you have burdened your self with - Trading is risky enough without amplifying risk. -You are pushing the outer limits unnecessary. Advice... Trade if there is a trade to be had, not because you have to reach some target. From bitter experience with many of the people I have taken through the rudiments of trading I can say that targets are a curse to any clear thinking serious trader.