Experinced traders only please ,Profit goals vs. buying power

Originally posted by EQTRADER
...These figures are for INTRADAY TRADING ONLY...
...12,000 shares total using approximately $260,000 in buying power @ 10am.
if the market rallys what should be his profit goal ?
I know this is subjective, but assuming these are strong stocks when the orders are entered ,some rally as the should, others may lag...
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No offense, but your post is asinine.

-How much are you expecting the market to rally?
-Did the market open up or down that day?
-Is the rally based on good news, or short covering, or the ousting of a political figure?
-Were those "basket" stocks purchased at the open or at yesterday's VWAP, or what?
-Do you have a stop loss rule?

These are just a few of the questions that sprang to mind when I read your post.
 
Your original question is oriented incorrectly IMO. Your second question has the important information...

I see what your saying, This is what I would do:
If the market rallys and these stocks don't go up I will sell at the market . If the market breaks I will sell them if they act weak relative to the market, taking a loss no larger than $2,000. If they Hold up in a sell off I may add to my positions.
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How much margin you use to me is immaterial. Instead the question is how much of your capital is at risk? If you are going to lose 2k when wrong, then IMO you should expect a min 2-6k in return. (1 to 3 to 1) As far as profit targets, there as many ways to choose this level as there are ways to choose an entry. Your first question should be... how accurate are you? The more accurate you are, the smaller your minimum profit objective needs to be. If you can consistently get 3 to 1, then you only need 25 winners out of 100 to be at breakeven.

But the simple answer to your question as I understand it is.... for a group of positions that put $2,000 at risk, your going to need to expect a profit of $2,000 or better in order to justify the risk you took.

Hope this helps!

-Bo Yoder
“That which should go up....SHOULD GO UP!”
 
Originally posted by bungrider


No offense, but your post is asinine.

-How much are you expecting the market to rally?
-Did the market open up or down that day?
-Is the rally based on good news, or short covering, or the ousting of a political figure?
-Were those "basket" stocks purchased at the open or at yesterday's VWAP, or what?
-Do you have a stop loss rule?

These are just a few of the questions that sprang to mind when I read your post.
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When a trader puts on positions, he has his reasons.. that is not what the post is about.

1. I don't know how much the market will rally ? do you ?

2.The market opened flat with these stocks out performing, I entered these positions @ 9:45 am

3. You should not assume the market rallied for any reason, its simply more buyers than sellers... don't over analyze

4. yes, I have a stop loss rule

5.You just don't UNDERSTAND what this post is about. I'm asking as a rule of thumb, what is a good profit goal for this situation.

6. the only way to make money in this business is getting the most out of your winners, while limiting your losses
 
You should make between $8000-15000 if the market has a decent rally (i.e. Nasdaq moves 20 pts.up). On Friday morning before 10am, my seatmate made $15000 when he was long 4000 NVDA, 2000 KLAC, 2000 NVLS, 1000 VRTS. Those stocks went up around 1 and a quarter points each.
 
"You should make between $8000-15000 if the market has a decent rally (i.e. Nasdaq moves 20 pts.up)."-Goldenarm


If you are pulling $11,000 (avg.) on 20 point Nasdaq moves then you should be retired by now....and you are the greatest trader that ever placed an order.
:eek:
 
Thanks, some posters don't understand relative strength. Its possible to make that much in the stocks you mentioned if you catch them right even if its "only "a 20 pt nasdaq move.
 
Originally posted by VOLUME
" If you are pulling $11,000 (avg.) on 20 point Nasdaq moves then you should be retired by now....and you are the greatest trader that ever placed an order.
:eek:
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Oh, but the key is catching the move at the right time! There are many times when the move fizzles out or ends up tanking. NO ONE is right the majority of the time. I'm just answering the question as it was asked...if you were long x shares of x stocks and the market rallies, what can you expect to make?
 
P.S. Of course, the type of trading you mentioned is super risky. You could easily drop $10K as much as make it. If you're going to load up like that, I wouldn't do it before 10:30am but later in the day and then only if the market has had a big selloff and the QQQs or futures show some support and appear to be turning up pretty rapidly. Another time to do it is when some favorable tech-related news (or rumor) comes out intraday. You have to be lightning quick on your buys, though and just as quick on hitting out (or lightening up) if you are wrong.

Just remember to follow your stops and sell into the rally at reasonable prices (i.e., not after 20 cents when you expect at least 3/4 to a point on your stock).

P.S.S. The guy who made the $15K on Friday, was down $75K over the past 3 weeks. He doesn't know what short sell or stop loss means. Well, even a broken clock is right two times a day.
 
Originally posted by EQTRADER
3. You should not assume the market rallied for any reason, its simply more buyers than sellers... don't over analyze
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Pardon me for interjecting a comment here but every transaction that takes place on an exchange is a pairing of buy and sell orders. There can never be more buyers than sellers. I think what you mean to say is that for a rally to take place, buyers have to be more aggressive than sellers. Perhaps a small detail, but it cuts to the heart of the matter. :)
 
Someone else brought this up, but how much you can afford to lose on a given day is really more important. The potential for loss is much more under your control and predictable than potential for gain. Theoretically, whenever you buy a stock you have potential for infinite gain, but who the heck cares, I never saw a stock trade at infinity.
 
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