1% per trade

[docarzt]

yes, i agree those are equal relationships. but i'm saying, since those 2 examples are equal....and there is a lesser likelihood of a 30% profit target than a 3% profit target, wouldn't it be wiser to go for smaller, more likely gains?

daniel_m said:
Of course there are more opportunities to catch 3% moves than 30% moves. To give you a daytrading example, take a $50 stock, of course there's many more opportunities to make 10cents than to make $1. It doesn't mean it's "easier" to do though.

I absolutely agree with this. In my experience it is not easier.

 

[spectre]

Choosing to hear what we want to hear is human. Everyone has a different style; whatever works best for you. Posters could go on and on about expectancies, probabilities but I think the only way you will find out is to try it. Paper trade 2 accounts and decide for yourself what works best for you.

Pick up this book : Tharp's Trade Your Way to Financial Freedom and see if the ideas make sense. It might help you with developing a system. It doesn't seem like you have one.

p.s. Cut your losses and ride your winners? (unless of course in the time frame that you are trading in rarely produces anything over 3% then I suppose small targets are ok for you).

 

[docarzt]

Ditch:
What is your R:R? Is your risk smaller than your target?

daniel_m:
I'm not sure that the relationships are linear. ie, 1%stop/3% gain = 10%stop/30%gain. So much of that depends on the strategy you employ.

I'm not sure, too. It was just an example. In my trading I am using the average true range instead of %.

 

[spectre]

3 times your initial risk

 

[Ditch]

Originally posted by docarzt
Ditch:
What is your R:R? Is your risk smaller than your target?

daniel_m:
I'm not sure that the relationships are linear. ie, 1%stop/3% gain = 10%stop/30%gain. So much of that depends on the strategy you employ.

I'm not sure, too. It was just an example. In my trading I am using the average true range instead of %.

I'm using a stop-loss of 2 pts, so if I'm lucky I get out at 2.5 pts.

 

[daniel_m]

Originally posted by spectre


Pick up this book : Tharp's Trade Your Way to Financial Freedom and see if the ideas make sense. It might help you with developing a system. It doesn't seem like you have one.

I doubt any serious trader out there hasn't read that book.

Here's an idea. Why don't regulators make reading and explaining that book the requirement to trade at a prop firm, instead of that freakin BS series 7 rubbish.

 

[FX-Trader]

Originally posted by daniel_m
Here's an idea. Why don't regulators make reading and explaining that book the requirement to trade at a prop firm, instead of that freakin BS series 7 rubbish.

 

[DATTrader]

Originally posted by daniel_m
Here's an idea. Why don't regulators make reading and explaining that book the requirement to trade at a prop firm, instead of that freakin BS series 7 rubbish.

Because that would make sense. What a stupid question.

 

[Gordon Gekko]

Originally posted by daniel_m


Was that the whole point of your thread?
Tell us something we don't know.

i shouldn't even be responding to that. i don't know about you, but i don't think discussing ideas is a bad thing.

 

[daniel_m]

Originally posted by Gordon Gekko


i shouldn't even be responding to that. i don't know about you, but i don't think discussing ideas is a bad thing.

Sorry, I meant it more as a joke.
It sounded to me like all you were saying is, "geez, developing a positive expectancy style is hard work.." Of course it is!

I agree. Discussing things is a great idea. Don't let my comments dissuade you.