Jack o'Clubs
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Doesn't it also depend on what you bet per point? 200-300 points at £10/pt has a different risk profile to targetting 40-60 points at £50, although in theory you end up at the same place.
Not sure 'targetted' winnings are a good way to go forward, as Hoggums suggests it can lead to desperation or complacency depending on how the month is going. I keep in mind an annual % return from capital employed, but wouldn't call it a target. But it keeps me realistic about whether I'm just riding the coat-tails of the wider market or actually outperforming, as well as making clear the opportunity cost of trading, eg if <7-8% then I'd be better off sticking it in Northern Rock....
Not sure 'targetted' winnings are a good way to go forward, as Hoggums suggests it can lead to desperation or complacency depending on how the month is going. I keep in mind an annual % return from capital employed, but wouldn't call it a target. But it keeps me realistic about whether I'm just riding the coat-tails of the wider market or actually outperforming, as well as making clear the opportunity cost of trading, eg if <7-8% then I'd be better off sticking it in Northern Rock....
swingtrader77
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I think setting a target is important because it helps manage expectations
However, I myself work more on the strategy and trading plan and then calculate typically what that would yield based on back-testing. This forms my future expectations
If I get more than historically, then great. If I get less, then it doesn't matter. Provided I have adhered to the Plan which is of primary importance.......and that the strategy has not broken down
Best wishes
Swingtrader
However, I myself work more on the strategy and trading plan and then calculate typically what that would yield based on back-testing. This forms my future expectations
If I get more than historically, then great. If I get less, then it doesn't matter. Provided I have adhered to the Plan which is of primary importance.......and that the strategy has not broken down
Best wishes
Swingtrader
Let me add a little more detail, as I am very new to this and dont think I communicated what I wanted to in the first post.
I play 3 markets, DOW/FTSE/DAX. Doing some estimate calculations or how many trades I will do, and an average success rate, I believe I will hit that figure..so I take it as a benchmark. I was just wondering if people did the same..and if so, what they aim for in a month.
I am a new trader and will be starting out with 500£ pot, after 2 months trading with fake cash and making nigh on 2k at 5 per point.
Hoggums - I dont think like that, if I am on 50, then thats fine - its still profit. Id never chase more points, as then it becomes gambling and not educated guessing. if im on 300, nah id never stop, but id probably change the amount id keep in my slush and the amount id take out to spend on beer that weekend
Jack - I agree, but then for me its all relative to your slush, and your chosen stop loss. for me 20-25 point stops are my maximum. im just trying to think of the points, rather than the money made/lost - then it becomes a more generic way of thinking whatever you are trading.
have I made things a little clearer?
I play 3 markets, DOW/FTSE/DAX. Doing some estimate calculations or how many trades I will do, and an average success rate, I believe I will hit that figure..so I take it as a benchmark. I was just wondering if people did the same..and if so, what they aim for in a month.
I am a new trader and will be starting out with 500£ pot, after 2 months trading with fake cash and making nigh on 2k at 5 per point.
Hoggums - I dont think like that, if I am on 50, then thats fine - its still profit. Id never chase more points, as then it becomes gambling and not educated guessing. if im on 300, nah id never stop, but id probably change the amount id keep in my slush and the amount id take out to spend on beer that weekend
Jack - I agree, but then for me its all relative to your slush, and your chosen stop loss. for me 20-25 point stops are my maximum. im just trying to think of the points, rather than the money made/lost - then it becomes a more generic way of thinking whatever you are trading.
have I made things a little clearer?
swingtrader77 said:
Jack o'Clubs
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pboi said:
'Fake cash' - you mean paper trading? If so there's a very good thread on paper trading that's currently live elsewhere on these boards that you might find useful.
Your second post makes your strategy much clearer - but I can't directly answer your question because I don't look at it the same way, but my 'breakeven' level is much lower than your target, but for a bigger effective 'pound per point'. Good luck when you go live with your pot - I hope you make money.
Yeh, using a demo account on Capital spreads.
For example today, I had 3 trades on dax/ftse/dow, with a 10 point profit stop each. All hit, and made me a total of 7200 . It was max risk on my 10k slush, but I want to try things from all angles before I go live. The crazy thing is if I was atk, and caught the swing, it would have been more than 30 points for the day.
I am approaching my trades from a 10-20 limit..but raising the pounds per point as my slush pool increases.
For example today, I had 3 trades on dax/ftse/dow, with a 10 point profit stop each. All hit, and made me a total of 7200 . It was max risk on my 10k slush, but I want to try things from all angles before I go live. The crazy thing is if I was atk, and caught the swing, it would have been more than 30 points for the day.
I am approaching my trades from a 10-20 limit..but raising the pounds per point as my slush pool increases.
