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How much capital is good to start full time trading
- Thread starter kming
- Start date
Quote from GGSAE:
But how can you advance as a trader if you place a ceiling on your potential?
You don't put a ceiling on your potential, you simply WALK AWAY if you feel like you had enough. The risk/reward of the trading day changes quick after the first 1-2 hours, thats why there is a pattern of daytraders making great coin in morning and giving it back in the afternoon. Sometimes you know you had a good run and unless the day is special somehow and is very active, you're bound for a drawback. Just cause you can have a great run at the open, does not mean that you will continue on indefinitely to a gazillion dollars. On occasion you will, but most of the time it's just a good swing that is bound to retract. Don't be a pig.
Another technique is to allow a certain % drawback, like 15% before calling it a day. Unfortunately slippage often screws this up.
Quote from Hydroblunt:
You don't put a ceiling on your potential, you simply WALK AWAY if you feel like you had enough. The risk/reward of the trading day changes quick after the first 1-2 hours, thats why there is a pattern of daytraders making great coin in morning and giving it back in the afternoon. Sometimes you know you had a good run and unless the day is special somehow and is very active, you're bound for a drawback. Just cause you can have a great run at the open, does not mean that you will continue on indefinitely to a gazillion dollars. On occasion you will, but most of the time it's just a good swing that is bound to retract. Don't be a pig.
Another technique is to allow a certain % drawback, like 15% before calling it a day. Unfortunately slippage often screws this up.
Can I ask what kind of style you trade? I personally trade intraday, so positions may last 1-2 hours or even a few days if i'm in the money. I always find opportunities in my trading system in the afternoon. For me i personally haven't found a correlation between a certain trading time period (except i avoid the pre and post market like the plague).
Quote from GGSAE:
But how can you advance as a trader if you place a ceiling on your potential?
Two answers ...
(1) If you set a goal and achieve it what's wrong with quitting for the day? You're not placing a ceiling on your potential. Rather, you achieved 100% of what you wanted in LESS than a full day. Why take a chance on giving some (or all) of your profits back? After all, there is MORE to life than trading and there's nothing wrong with spending it outside of "work" doing things that you truly enjoy.
(2) As a trader evolves, he/she can raise their target profit goal per day (or week). So they are not limiting their potential with this approach. Conversely, if one hits a slump there's nothing wrong with lowering your target. The end objective (for me) is to be around for the long(er) term.
Well said. This ties in with the post Hydroblunt made about having good morning trading followed by bad afternoon trading. I have learned through hard experience that it is sometimes wise to walk away and do other things.
Regards
Regards