Out of curiousity. Do any of the more exprerienced traders have targets? I was thinking to motivate myself i would try to aim for a 10% inrease in capital per week as i am just starting out. But i was wondering if anyone else has targets or are they not possible to set and keep.
I've often thought stating targets in that type of way will give you more problems than solutions. That is, the tendency to 'chase' trades rather than trade plans.
There are alternative possibilites, maybe think about a target based on points rather than £ as a starter.
Cheers
There are alternative possibilites, maybe think about a target based on points rather than £ as a starter.
Cheers
donaldduke
Experienced member
- Messages
- 1,665
- Likes
- 260
Targets are good in that you are pushing and motivating yourself
to perform..
However if your targets are too agressive this can lead to
bad trading: hoping chaseing etc..
If you are properly capitalized you can set realistic and
achieveable targets for yourself. Like averaging only
6% a month which works out at 100% a year.
to perform..
However if your targets are too agressive this can lead to
bad trading: hoping chaseing etc..
If you are properly capitalized you can set realistic and
achieveable targets for yourself. Like averaging only
6% a month which works out at 100% a year.
Salty Gibbon
Experienced member
- Messages
- 1,535
- Likes
- 6
I believe that targets are essential to a complete trading plan.
IMHO it is important to think in terms of both pounds and points and gradually increase the pounds per point as you go along.
You may be able to score 1,000 points per month at £1 per point but it does not necessarily hold true that you would score 1,000 points at £10 per point.
Pyschological factors would come into play at £10 per point and the fear of losing at that level might impede one's ability to maintain the points target.
So my approach is first to ensure that I can make the points and then increase the position size gradually over a period of time.
My ultimate target for stock trading would be of the order of 100 points ( 100 cents ) per day with a position size of 1,000 shares.
I am not there by a long chalk but I intend to get there by a gradual process of increasing the points target and position size in line with measured increases in my capital pot.
IMHO it is important to think in terms of both pounds and points and gradually increase the pounds per point as you go along.
You may be able to score 1,000 points per month at £1 per point but it does not necessarily hold true that you would score 1,000 points at £10 per point.
Pyschological factors would come into play at £10 per point and the fear of losing at that level might impede one's ability to maintain the points target.
So my approach is first to ensure that I can make the points and then increase the position size gradually over a period of time.
My ultimate target for stock trading would be of the order of 100 points ( 100 cents ) per day with a position size of 1,000 shares.
I am not there by a long chalk but I intend to get there by a gradual process of increasing the points target and position size in line with measured increases in my capital pot.
Well im gonna aim for 100 points a week, i have done way more than that before but have had some negative ones too. I think for me this will at least give me something to aim for which isn't too difficult but also will limit me if i reach it as i won't get greedy for more which could work against me. Gonna try this for a few weeks then increase it by 10% weekly, i.e 110, 121, 133 etc. And when capital allows increase stake.
Hmm a plan, now to stick to it! :cheesy:
Hmm a plan, now to stick to it! :cheesy:
From my experience - I'd agree with Chump.
I tried setting targets when I started. All I found out was that I ended up overtrading to hit my target towards the end of the week. Needless to say this resulted in me losing the money I made earlier.
Then I stopped. I found out I was more laid back in my style and the money started to accumulate. I let the market give me what it was going to, rather than me holding on in vain hope of hitting the target.
Others obviously seem to find them helpful in focus.
SO, it depends on you! There is no 'one size fits all' here.
I tried setting targets when I started. All I found out was that I ended up overtrading to hit my target towards the end of the week. Needless to say this resulted in me losing the money I made earlier.
Then I stopped. I found out I was more laid back in my style and the money started to accumulate. I let the market give me what it was going to, rather than me holding on in vain hope of hitting the target.
Others obviously seem to find them helpful in focus.
SO, it depends on you! There is no 'one size fits all' here.
Personally i think it is good to have a target as part of one's trading plan cos it gives u something to aim 4 each week...........my targets r usually modest and reachable but not a matter of 'do or die'....some weeks u will hit ur target and some other times u won't but the most important thing is not to force issues when u feel u r lagging behind.
