Your subject "Day Trader" implies you are capitalized with a minimum of $25k and that you go home flat every night. If indeed that is the case, here are my thoughts.
- Wiser traders than me will point out that it only makes sense to expect larger gains on some days than others because the market moves more on some days that it does others. That makes perfect sense, but I do not employ that line of thinking / practice.
- Instead, I look at my progress for each day. Unlike conventional wisdom, I have a % profit target for each trading day, which is 1% (Stop Loss 2%) hence if you have 20 trade days in a month, you'd expect roughly 20% per month.
- Most days i can realize 1% within the first 90 minutes and other days i may struggle to reach that amount while taking an extra hour to do it.
- Often, I can do 3% per day in the same time, but it's easier to just stop at 1%.
- Again, I know setting the bar per day instead of fishing when they are biting will most always be frowned upon. My approach clearly don't appear optimal, but it fits me. I need smaller measurable goals. I trade volatile stocks / ETFs and they are gonna move plenty. My job is to be sure I'm on the right side and keep the winners a tad longer than the losers.
- A daily goal requires you screen when your favorite instrument goes sideways. You can almost always find a mover, if not take a 10 minute walk and come back. Don't be married to one instrument.
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