Setting Day Trading Targets For The

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Business Creating targets and objectives for the year ahead is such an important part of running trading like a business. Having done this, it is much easier to quantitatively and qualitatively assess performance and then adjust things as necessary. Goals also help maintain a level of performance in that they give you something to shoot for. They force you to be specific with deadlines and they create clear accountability. For anyone who is willing to .mit the time and effort into thoroughly devising them, goals and objectives can be significant motivational tools. The trouble is that so many people overlook this exercise as either unnecessary or just because they don’t know how to go about it. In the knowledge that there are many different strategies out there traded by people of all different skill levels and objectives, here are a few areas you might want to consider in constructing you own yearly targets and objectives. Strategy research and implementation is something that needs to be undertaken on a perpetual basis if we are to survive and evolve as traders. Anything from developing certain ideas into strategies to researching and adjusting its variables can be included here. A simple but useful idea for planning when to do this is to note down all the big economic figure release and rate decision dates for the .ing month/year and use the time directly prior to do some R&D. Metric based changes can be implemented based on the specifics of your current strategies. You have to keep a log of all your trades. If this is something you don’t already do, you must do it. The sorts of stats you can look at from your trade data log which may have significant bearing on your performance in the year ahead are: Average P/L per contract; average time per trade; MFE/MAE(maximum favorable/adverse excursion- basically what was the maximum profit and loss the trade was printing before you closed the position); average p/l in the morning vs. afternoon; average p/l per Monday for example. Basically, anything you can think of that might have significant bearing on your trading can be looked into. Next .es the all-important Weekly/Monthly/Quarterly/Yearly profit targets. It sounds simple but if you are too high or too low, you’ll end up falling short of your strategy’s and your personal potential. If they are too high and you have no chance of hitting them, the motivational strength of goal setting is lost. Too low and clearly you won’t need to put much effort in to ‘succeed’. What I tend to do is look at my average trade and number of trades a day for a minimum daily figure. I then look at the average of the positive days to get a 2nd target and find a 3rd by looking at what a good day is. Of course it’s useful to look at what the market has the potential to give too, as otherwise you might not be pushing yourself enough. Then you have to work out a figure for the week/month etc. The important thing to recognize is that you won’t always meet your daily targets and so this needs to be factored in. Lastly I’d point out that you must address your holidays. Are you going to take a fixed time of the year off? Will you take time off in the middle of a winning streak? Will you force yourself to take some time off when you have a poor run? Or will it be when you meet your targets? As simple as the idea sounds at first, it can really affect your trading performance and consistency. For example, just think how you are on a Monday morning after the weekend and you’ll see what I mean! The ideas which I’ve covered here are simple and straight forward. There are other things you need to put in your plan, but I’ll leave that for you to ponder. It’s nothing ground-breaking, just .anization and hard work. Doing the simple things well creates solid foundations for us to build on and increases the chances of success in this hard business we are in. Trade well. About the Author: 相关的主题文章: