I think the only thing you can manage is the risk/loss. As for profits, the markets give you what they give you. Every day is different. I can set a maximum risk level, we can agree on not losing more than X. but i cant promise any specific number for profits, only ranges and estimations. Yes you can make a nice sheet with desired daily profits in % & $ and accordingly annualize it to know how much you would make at year end (if you sustain this) but thats all theory and used to comfort your clients if they ask about performance.
How do you determine daily profit target?
- Thread starter povstanets
- Start date
The consensus on this thread does seem to share your view and I understand that, but I just still feel like a person could guarantee a profit goal each day if 1. Its a small enough tick/point goal that its attainable on any day (they make money by increasing contracts - not points) and 2. By adjusting their daily profit goal each morning based on ATR.
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Yes i agree, The trading style you mention is very possible. It has its people and they do exist. If you feel comfortable trading like that, then keep fine tuning and repeating. Nothing beats the bliss of trading your own way.
I found this info-graphic on strategies, pretty interesting; as far as what levels they buy at that would be nice to know! What I've noticed with the HFT's is that they pile on to each others trade causing price spikes/drops in a matter of seconds; so the main ones I notice or that effect me just seem to be trading a greater fool strategy of sorts; on the longer timeline price spikes like over minutes, perhaps the HFTs are sparked by some sort of large broken up bloc order they sniffed out or such too? its a pretty interesting study.
In other words: cut your losses and let your profits run.
The thing is, markets don't move on a day to day basis. Yes, there is spike or dip at the start and/or end of a trading session (obviously not for forex), but these tend to even out. This makes it pointless to have a daily p/l target.
Which doesn't mean day trading doesn't have its merits, but it needs to be placed in context.
Which doesn't mean day trading doesn't have its merits, but it needs to be placed in context.
Can you explain further what you mean by "markets don't move on a day to day basis"!
J_S
The only thing that interests me there is the last one. Unless we can actually talk to a HFT programmer and ask him straight out is there a common denominator that ye use in relation to TA instigated buy/sell programs, we will just have to keep looking and keep reacting - I have an idea but am reluctant to share it as some people could lose money if they decide to act on what I say.I found this info-graphic on strategies, pretty interesting; as far as what levels they buy at that would be nice to know! What I've noticed with the HFT's is that they pile on to each others trade causing price spikes/drops in a matter of seconds; so the main ones I notice or that effect me just seem to be trading a greater fool strategy of sorts; on the longer timeline price spikes like over minutes, perhaps the HFTs are sparked by some sort of large broken up bloc order they sniffed out or such too? its a pretty interesting study.
J_S
What I'm trying to say is that markets have their own "time". As they are a collective representation of buying and selling by a large number of entities - and with algorithms it's not only people, banks and funds that are doing it - they don't necessarily follow the circadian rhythm of human existence. That' why we see markets, currencies, etc. moving two days up for a 2% gain, immediately followed by two days down with -2%. For us four days have passed. For markets it was just a little blip in a larger move.
Just to reiterate - if one is shrewd enough to predict these ups and downs - then day trading is the way to go. It's not impossible, but it's definitely harder than trend following.
Ok, I see your point now, and what we are back to is the individual approach again, which of course is all dependent on time available, capital, family, etc..etc.
We are all different with different "living" circumstances - so, as many have reiterated on this site, many many times, pick the best approach that suits YOU, which is really common sense!
It is no good trying to learn daytrading the open, if when the bell rings you are going to be sweeping the floor of the gym, pulling out a big dirty rotten tooth, or changing a baby's smelly nappy
Common sense is not that common really, but that is a whole new discussion for another day!
To try get back on track - how do YOU determine YOUR daily profit target - one answer is YOU determine it based on what time you have available to trade, what approach you use, and how well you understand what you are doing.
Personally, I find that a specific AR computation for certain stocks, will, on average, in 4 days out of 5, hit either your up or down target, and some days hit both!
What use is this?
Very useful if you can get on the right side of the trade asap, which of course is the hard bit and will only get better by gaining the required experiences and learning how to act and react to an ever changing environment - this does not mean you jump in and out repeatedly (whipsaw), but it means you enter at your first "identified" opportunity, and be ready to reverse trade if that opportunity does not work out and your "second" identified opportunity has materialized.
This "action/reaction" gives you a far better chance of you hitting that daily target, which, can happen on average, 4 out of 5 days as mentioned.
Is that a so called "edge" if it works - you tell me?
J_S
We are all different with different "living" circumstances - so, as many have reiterated on this site, many many times, pick the best approach that suits YOU, which is really common sense!
It is no good trying to learn daytrading the open, if when the bell rings you are going to be sweeping the floor of the gym, pulling out a big dirty rotten tooth, or changing a baby's smelly nappy
Common sense is not that common really, but that is a whole new discussion for another day!
To try get back on track - how do YOU determine YOUR daily profit target - one answer is YOU determine it based on what time you have available to trade, what approach you use, and how well you understand what you are doing.
Personally, I find that a specific AR computation for certain stocks, will, on average, in 4 days out of 5, hit either your up or down target, and some days hit both!
What use is this?
Very useful if you can get on the right side of the trade asap, which of course is the hard bit and will only get better by gaining the required experiences and learning how to act and react to an ever changing environment - this does not mean you jump in and out repeatedly (whipsaw), but it means you enter at your first "identified" opportunity, and be ready to reverse trade if that opportunity does not work out and your "second" identified opportunity has materialized.
This "action/reaction" gives you a far better chance of you hitting that daily target, which, can happen on average, 4 out of 5 days as mentioned.
Is that a so called "edge" if it works - you tell me?
J_S