It is quite hard to put measurable goals on setups - PnL is much easier. How would you suggest goals be written in this manner? After all, goals are pointless if they are not clear and measurable.
Goal Checklist for Struggling Trader
- Thread starter SwingOutOn5
- Start date
It is quite hard to put measurable goals on setups - PnL is much easier. How would you suggest goals be written in this manner? After all, goals are pointless if they are not clear and measurable.
well taken. I think I might add in something about PnL/Shares Traded
any specific thoughts?
I would remove dollar amounts. Focus on executing your plan flawlessly. The profits will come.
Regarding P/(L) and Shares Traded
Using the e-mini model as a base, you can trade 1 e-mini contract for $500 at a number of reputable brokers, not that I would recommend it (I wouldn't), but you have that much (or rather, little) margin to work with in the worst case scenario, and I never want to go lower than double that amount (safety, safety, safety).
So start off with a margin account of $2,000 per e-mini contract. Trade your setup(s) until one of the following two scenarios happens:
Scenario 1. You make another $2,000, at which point you can add another contract, so forth and so on until you can trade 10 contracts at a pop.
Scenario 2. You lose up to $1,000, at which point you have to add another $1,000 to build your base back up. (While you are doing this you will also need to find a different trading methodology, one which has a greater positive expectancy).
The Money Management grid looks like this:
(US$) # of Contracts
$2,000 1
$4,000 2
$6,000 3
$8,000 4
$10,000 5
$12,000 6
$14,000 7
$16,000 8
$18,000 9
$20,000 10
Once you build your equity up to $4,000, you can start trading 2 contracts. If your margin goes down to $3,000 or less, you can only trade 1 contract until you build your equity back up to $4,000.
Once you build your equity up to $6,000, you can start trading 3 contracts. If your margin goes down to $5,000 or less, you can only trade 2 contracts until you build your equity back up to $6,000.
Etc.
P.S. From the previous post, if your setup doesn't happen on a given day, DON'T TRADE! Just wait for your setups
Using the e-mini model as a base, you can trade 1 e-mini contract for $500 at a number of reputable brokers, not that I would recommend it (I wouldn't), but you have that much (or rather, little) margin to work with in the worst case scenario, and I never want to go lower than double that amount (safety, safety, safety).
So start off with a margin account of $2,000 per e-mini contract. Trade your setup(s) until one of the following two scenarios happens:
Scenario 1. You make another $2,000, at which point you can add another contract, so forth and so on until you can trade 10 contracts at a pop.
Scenario 2. You lose up to $1,000, at which point you have to add another $1,000 to build your base back up. (While you are doing this you will also need to find a different trading methodology, one which has a greater positive expectancy).
The Money Management grid looks like this:
(US$) # of Contracts
$2,000 1
$4,000 2
$6,000 3
$8,000 4
$10,000 5
$12,000 6
$14,000 7
$16,000 8
$18,000 9
$20,000 10
Once you build your equity up to $4,000, you can start trading 2 contracts. If your margin goes down to $3,000 or less, you can only trade 1 contract until you build your equity back up to $4,000.
Once you build your equity up to $6,000, you can start trading 3 contracts. If your margin goes down to $5,000 or less, you can only trade 2 contracts until you build your equity back up to $6,000.
Etc.
P.S. From the previous post, if your setup doesn't happen on a given day, DON'T TRADE! Just wait for your setups
omniscient
Guest
SO5 -
a lot of people have offered some very good suggestions, but i think you need to look at other things before you look to a Goal Sheet to cure your slump.
in your sheet, you indicate you traded profitably for 1.5yrs until you hit your current 3mo skid. something has changed. either:
1. your setups/plan are no longer valid (or 'differently' valid)
2. you are not trading your setups/plan the same as you did for the 18mos you were profitable
whatever has happened, it needs to be identified and addressed first. otherwise, you open yourself up to trying to lean on a Goal Sheet. your Goal Sheet is a minor extension of your trading plan and you - not the other way.
hth
take care
omni
a lot of people have offered some very good suggestions, but i think you need to look at other things before you look to a Goal Sheet to cure your slump.
in your sheet, you indicate you traded profitably for 1.5yrs until you hit your current 3mo skid. something has changed. either:
1. your setups/plan are no longer valid (or 'differently' valid)
2. you are not trading your setups/plan the same as you did for the 18mos you were profitable
whatever has happened, it needs to be identified and addressed first. otherwise, you open yourself up to trying to lean on a Goal Sheet. your Goal Sheet is a minor extension of your trading plan and you - not the other way.
hth
take care
omni
After reading the other posts and giving the subject more thought, I'd like to make a few modifications to my previous post(s).
The market(s) is/(are) adaptive and constantly moving, entering periods of "obvious" bullishness, bearishness and no trend phases.
1. The very first thing you must do is have a method which tells you when the market is in a bullish phase, when it is in a bearish phase, and when it is neutral (plenty of books around for that one), and you must follow more than one market, for the sake of diversity.
2. Then you must go from having a goal of a fixed amount on a daily basis to having that same target goal, but on a weekly basis. This correctly reflects the fact that the market will have a couple of wide range days, a couple of medium range days, and a narrow range day in a given week.
3. Also based on the previously made statement, you need staggered profit targets, which will allow you to take advantage of the short-term moves but still leave something on the table for those wide ranging days.
4. Finally, you must have setups that you take in the bullish phases, setups you take in the bearish phases and setups you take when the market is non-trending (consolidation).
If you can implement a trading system which fits all of the above criteria, with a process for determining which way the wind is blowing (bullishness, bearishness, neutrality), a way of profiting whether the market is going for a short-term or an extended trend, and setups which adapt to the current market conditions, I think you'll win.
Best of Luck All,
Jimmy
The market(s) is/(are) adaptive and constantly moving, entering periods of "obvious" bullishness, bearishness and no trend phases.
1. The very first thing you must do is have a method which tells you when the market is in a bullish phase, when it is in a bearish phase, and when it is neutral (plenty of books around for that one), and you must follow more than one market, for the sake of diversity.
2. Then you must go from having a goal of a fixed amount on a daily basis to having that same target goal, but on a weekly basis. This correctly reflects the fact that the market will have a couple of wide range days, a couple of medium range days, and a narrow range day in a given week.
3. Also based on the previously made statement, you need staggered profit targets, which will allow you to take advantage of the short-term moves but still leave something on the table for those wide ranging days.
4. Finally, you must have setups that you take in the bullish phases, setups you take in the bearish phases and setups you take when the market is non-trending (consolidation).
If you can implement a trading system which fits all of the above criteria, with a process for determining which way the wind is blowing (bullishness, bearishness, neutrality), a way of profiting whether the market is going for a short-term or an extended trend, and setups which adapt to the current market conditions, I think you'll win.
Best of Luck All,
Jimmy