Daily targets

[leroe]

Question please...

Do you think it wise to set daily targets for trading profits, in terms of say hitting the required target and then switching off and going to do something else? Or is that too restrictive and becomes too much of a focus? I would be most interested to hear what other full time traders do, as we all have to earn a certain amount each month to pay the bills and it is an issue that I am debating with myself at the moment!!! Thank you.

[Cran]

If you were going fishing would you set a target of catch 5 fish then come home...?

It doesn't really matter either way... it's up to you...

But if you do set targets, be careful not to set targets that mean you take risks and try to force money out of markets when it isn't there.

[RManPT]

I don't make a living from trading (yet ), far from it but I tried both ways.

On one hand setting targets maybe a bad thing if you are having a bad day. The pressure of hitting that target is the same thing psycologicaly as chasing losses and we all know how that ultimately ends.

On the other hand I for one find it very difficult to stop trading while there are markets to go if the day is going good and often I end up messing the whole day results at the last 2 or 3 races (They are the last maybe because I lose) just because I get into a state of "Just another 5€ and I'll wrap it up" and I lose in the first then "Just get those 20€ back" and I lose in the second and then "WTF! can't close the day losing" and I lose it all In this case I found helpful to have a target... If I hit it by the end of the UK races I close the toy, update my logs and go do something else as fast as I can to put my mind away from it.

As you can see I'm still struggling to have discipline and that's why I'm not a good trader.

So my advise for what is worth... do what is best for you.

[lcredd]

I have thought about that recently too. After a few hours I feel worn out and stressed, but I continue to trade.

I suppose you should trade if you believe you have an edge, and not set targets. Getting tired and stressed negatively effects your trading and also your trading experience. If you make £50 in 2 hours of controlled, focused trading, then is it really worth making £100 in 6 hours of stress-filled, emotional-rollercoaster trading? I would say 'no'. The more pleasant your trading experience, the more keen you are the next day. I'm not looking forward to it today because yesterday was such a headache.

A key discipline, which I don't have, is knowing when to call it a day. 2 hours of controlled, profitable trading could then be upped to 4 hours - with an hour break in the middle. If you can control your emotions, even if it means by taking yourself completely away from trading, then the greater your edge IMHO.

(If only I could follow my own advice...)

[RManPT]

(If only I could follow my own advice...)

my thoughts exactly if I can get there I believe my trading consistensy will improve greatly

[leroe]

Thanks guys, appreciate the comments. It is being clear and focused in trading that is definitely the key, as I too start to lose focus after a few hours and always seem to make more errors when I am trying to push it later in the day (targets or not). It is just hard to know when to call it a day and when to carry on especially on a good day, but they are all things that we have to decide ourselves I suppose. There is nothing more frustrating, like yesterday, to have a great first 2 hours and then instead of switching off, end up at the night meeting at Kempton trying to get back to where you were 6 hours earlier!! Such is the trading life though. Maybe one day we shall all have this sorted and do what we know is right!!!! Thanks again

[bazbaz]

Just make as much as you can.

Only time you should stop trading is when your head or body isnt right, you're saving energy for better stuff, you've got something better to do or when conditions mean its not worth your time.

[Temujin]

Let your profits ride, cut your losses short.

Yeah? Is that not the moral of trading? When you are trading well, keep going. When you aren't, stop.

Think about the message you are telling yourself and your mind when you set a target. The message is that your mind has done its job and has finished for the day. So while some will use this to prove why they should stop at a target, I prefer to use it as proof to not set the target in the first place.

Simple fact is, if you have an edge, the more you turnover, the more you make. Stopping when you have an edge makes zero financial sense whatsoever. Yes it makes personal sense, health, wellbeing, whatever, but not financially.

[inandout]

If a taxi driver is collecting fare after fare on a Saturday evening should he stop after two hours?
If a taxi driver is sat at a taxi rank on a tuesday afternoon, taking no fares after two hours, should he stop for the day?

[Caan Berry]

No .

[LuckyYou]

For me trading is like a fusion. I may some times make a target but I don't have to stop when I fulfil it or suffer much if I don't. I just trade every possible race that I can trade, no matter do I lose or win. Just like a fusion, it can't be stopped so easily if you want to

[greggescape3]

I agree with Bazbaz.
Keep going until the mind or body has had enough, then stop.

You should keep going until you've reached the mind or body limit not a money target.

[valve]

Psychologically, the only thing that profit target will cause is the decrease of your carefulness.

[zrg]

Setting goals works for me because I'm more motivated to reach them. My goals are to trade at least ten races, I find many more but I know that I usually make enough for me in ten races. My goal is to follow my rules every race even if I lose and I try to calculate in points and not in money.

[Knight Rider]

No .

This.

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