Micro E-mini Madness (2% per day)

sstheo said:
CORRECT. Compounding is the only way to reach the $10,000. So I will target an average net profit of 2% of the beginning balance each day.

I think this is can be done if I don't allow my bad trades to knock me too far off track. (i.e. holding on to losers). If I take my losses quickly and move on to the next trade I should be fine.

I was going to do another post with my account rules, but since you asked --Regarding the trading hours, I am actually going to allow myself to trade pre-market and then the full NY session if necessary to reach the goal. But I prefer to be done by 11:30 Eastern Time. The Asian session is too erratic to trade well with the low volume.
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I think percentage targets are bad for your development. In the end, ironically, you sell yourself short. Here is why:

Many times the market will not support your trades, day in and day out. Most of the time you will make a little and lose a little. If you have done this successfully, and eliminated large losses, you will have some trades that increase your account by 30%. I have done this for the whole successful part of my career. I think setting a 2% goal inhibits your ability to make 30%. It's completely self-limiting, and unrealistic as a daily goal. The markets will just not support this type of result day in and day out. Even if they do on paper, what is your ability to realize the market action, go from short to long or vices versa, scaling in vs. taking a full position, etc, on a minute to minute basis every day? My answer is that it cannot be done, and it shouldn't be the goal.

You are falling for the consistency fallacy in trading that comes from the socially ingrained idea of making a consistent living, a paycheck. 2% per day or whatever. Gains in the markets come from periodic outsized gains, and the rest of the time hopefully you are treading water, having a "in system" type of drawdown (losing), or just out of the markets completely.

I realize and expect that i will be proven wrong, because it isn't my interest here to prove a point. What I have told you is how my results are since I turned a big corner years ago. I tried the 2% per day, and it was so nerve racking, then so boring, I never really did that well. So, hopefully your personality is in line with your goal, but I will still say this cannot be done.
 
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