I am 'EVENT-DRIVEN' and investing on the mid.term outlook. Making a average net profit of 25-30 percent monthly.
Freerenkosignals posted: Hi:
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.
I do not have any daily target as it creates a wrong mindset. A trader should take what market gives. One day it may be 2%, another day 0.0001%, in the lucky day 5%. I take what market gives. Having a target in the flat market will involve you in overtrading.
FXtrader2010, that is a very long term approach having only a one year target. At least a weekly one is needed to have some control on risk management. I even will suggest a daily target and stop loss based, when things goes sour in the percentage of the trading account. How about 4% loss for the day and we call it quits? And furthermore a profit for the day of lets say 6% that will give some control over when we should not over trade regardless if we are in profit or loss. Traders interested in this kind of control can visit RMMRobot.com and read about some basic ideas on how to protect the trading account.
kricka posted: FXtrader2010, that is a very long term approach having only a one year target. At least a weekly one is needed to have some control on risk management. I even will suggest a daily target and stop loss based, when things goes sour in the percentage of the trading account. How about 4% loss for the day and we call it quits? And furthermore a profit for the day of lets say 6% that will give some control over when we should not over trade regardless if we are in profit or loss. Traders interested in this kind of control can visit RMMRobot.com and read about some basic ideas on how to protect the trading account.
A daily % of capital for loss,as regards upside profit,you should have a pretty good idea how much your FX pair moves as an average,apart from data releases,take for instance eur/usd,if its 100 points daily,I will watch for weakness around this amount,allow for pull backs of 15 points on a strong trend.
you will never make it long term if you only focused on daily/ weekly targets. You will be into the 90% loser bin sooner or later. The ATR and volatility changes too frequently to have a realistic approach to realistic weekly gains!
The market doesn't care about time, not every day is the same, every single period of time represents fresh data and a whole host of complete different variables that all come into the market with different volumes thus creating what you see on a chart. Just because you think you see 100pips in a day doesn't mean you can extract 10 pips every day easily.
You only focus on daily/weekly targets because you probably just gambling and or have a balance insignificant to much. If you really are serious about trading and want to do it for the long term even monthly targets is kind of pushing it. You have to look at as a business, you only file taxes once per year...
FXtrader2010 is exactly right. Something for posters/believers of daily targets to keep in mind (going to borrow a line from everyone's favorite investor - Warren Buffett):
'Our long-term economic goal....is to maximize the average annual rate of gain in intrinsic business value on a per-share basis. We do not measure the economic significance or performance of Berkshire by its size; we measure by per-share progress.'
That quote pertains to equities, but the principle is to focus on longer term (i.e. annual) returns for longevity.
If you have a mixture of long term targets and short term targets you just can't ignore daily and weekly goals. This of course depends on what time frame one is trading on. If you are strictly a swing trader then a weekly target should do it. If you are a day trader and by not having a daily and a weekly stop loss, target of the trading account, I would say that is 'psychology suicide'.
Best way to calculate daily target is: Trade your plan, feel comfortable on market, just do what you do during normal trading days, and after 2 months you can calculate your avarage daily profit- and this is your daily target. My monthly target is about 20%( daily its about 0,7%). If It is much i dont know. Thats my target i do it month after month, and i live from it. https://www.myfxbook.com/members/koval/hedge/1302582
@NextGenFund Hi, You wont suceed. You trade without stop loss and such trading cant last for longer period.
I respect your opinion sir.. but in my opinion, i'm a trend follower, do I need a stop loss if in my analysis and indicators on my charts shows that the prices are clearly moving in one direction and I 've analyzed the extent to what level the prices will move in that direction and how many pips or profit i need and close the trades before the price changed.... dont be greedy...
don't try to predict the price movement and trying to be a smart guy to sell on the top and buy on the deep.... just let the price move and just follow the trend... trend is your friend, rite?