What is the best way to work out your profit target? - Psychology and Money Management | futures io social day trading
futures io futures trading


What is the best way to work out your profit target?
Updated: Views / Replies:2,724 / 14
Created: by pyekorn Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 1  
 
Thread Tools Search this Thread
 

What is the best way to work out your profit target?

  #11 (permalink)
Elite Member
Austin, TX
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: Currencies
 
hondo69's Avatar
 
Posts: 165 since Jun 2009
Thanks: 57 given, 240 received

Unfortunately, those are rules I cannot write down because you have to develop a sixth sense for price action (and there are some great posts regarding price action on Mike's web site). Personally, I think it takes a long time to develop that sixth sense.

In the mean time develop your own rules that keep you comfortable. You might exit at a five tick profit and be happy with a winning trade. Then don't get frustrated to watch the market run another 30 ticks your way. You made the right decision and you followed your rules. In other words, you traded on your own terms.

But I also think it's important to become more flexible over time. Imagine dating 5 different women in 5 days. Each date would be different and as long as each date was a pleasant experience for all it was a great success. Now imagine it's a month later and you have 5 more dates lined up. But this time you've set the goal to kiss each one sometime before the night is over. If one of the 5 doesn't let you kiss her has your whole week been ruined? If it has it's only because you set that arbitrary goal in your mind before going on the dates.

So trading is kind of like going on a date. Make each experience as pleasant as possible. And she'll give you the signal if it's OK to kiss her.

Reply With Quote
The following 3 users say Thank You to hondo69 for this post:
 
  #12 (permalink)
Elite Member
Bellingham, WA
 
Futures Experience: Intermediate
Platform: Ninja
Broker/Data: Zen-Fire
Favorite Futures: 6E, CL
 
Dragon's Avatar
 
Posts: 494 since Aug 2009
Thanks: 747 given, 253 received


hondo69 View Post
So trading is kind of like going on a date. Make each experience as pleasant as possible. And she'll give you the signal if it's OK to kiss her.

LOL. That is one of the funniest analogies I have heard on trading in a while. Thank you Hondo.

Reply With Quote
 
  #13 (permalink)
Trading Apprentice
Garner, NC/USA
 
Futures Experience: Advanced
Platform: Ninja Trader, thinkorswim
Broker/Data: thinkorswim, MBTrading
Favorite Futures: TF
 
Posts: 29 since Dec 2009
Thanks: 16 given, 33 received


Unfortunately, those rules can only be written by you. It is possible to look at someone else's rules and modify them to your own, but the only way you will feel comfortable is if you use your own rules, however you come by them.

My rule number 1 is: "I would rather be out of a trade wishing I were in, than in wishing I were out."

I use a method similar to what Big Mike described, except that I scale out until there is only one contract left. That last contract is the ONLY one on which I will ATTEMPT to let profits run, trailing a 50% stop. In other words, I am willing to let go as much as 50% of the profit of the last contract. If the market keeps going really hard in my direction, I can always add another trade, still scaling out until only one contract is left. Does that mean that I leave some on the table? Sure. Refer again to rule #1.

If you want a specific rule of when I exit the last contract, (using a long position as an example), I exit when a candle closes below the low of the last candle. Not dip below, close below. As soon as it dips below the last candle, I move my stop to 4 ticks below the current low and wait. If the candle ends up closing above the low of the last candle, my stop stays right there if it is less than 50% profit, or is moved in to 50% profit. My stop is NEVER moved back. Again refer to rule #1. If the candle closes below the last candle low, I am OUT with a MARKET order. When I want out, I want out NOW, never mind leaving one tick on the table.

The 50% stop is just a disaster stop. In other words, a stop in place, just in case something catastrophic happens so quickly that I cannot move the stop in.

Naturally, the exit trigger in a short position will be the high of the last candle.

I enter the market on limit orders at the ask, scale-out targets are limit orders, stops are ALWAYS "stop market". Again refer to rule #1. When I want out, I want it NOW.

I hope this helps you in some manner.





NickA View Post
Could you write down those rules so that another trader could exit in the same place? Have you written down those rules so you can exit consistently? If not how do you tell that you are being disciplined and following the rules?

Forgive me (the new boy) playing devils advocate.


Reply With Quote
The following user says Thank You to koganam for this post:
 
  #14 (permalink)
Elite Member
London
 
Futures Experience: None
Platform: MC & Ninja mainly
 
Posts: 130 since Jan 2010
Thanks: 3 given, 47 received


hondo69 View Post
Unfortunately, those are rules I cannot write down because you have to develop a sixth sense for price action (and there are some great posts regarding price action on Mike's web site). Personally, I think it takes a long time to develop that sixth sense.

In the mean time develop your own rules that keep you comfortable.....

I hate to be the bearer of bad news but until you have proper rules and a framework to operate within your outcomes are unlikely to change. Sure traders develop a sixth sense but without initial discipline you'll be long gone before it develops. Without a plan how are you going to judge if you are being consistent? (Or is consistency not important to you?) Dunnigan's work might interest you he did a great job of quantifying price action. Or even good old Joe Ross or any of the threads here you mention, Gann did some great stuff on PA too. Any of them should give you an idea how to quantify price action so you can use it consistently in your own trading.


koganam View Post
Unfortunately, those rules can only be written by you. It is possible to look at someone else's rules and modify them to your own, but the only way you will feel comfortable is if you use your own rules, however you come by them.

Yes of course. What I wanted to highlight was whether hondo had written down his own rules or whether he even could. Actually it was clear to me from his first post in this thread why he was having difficulty. By asking him these questions I hoped to gently nudge towards what the problem is. This time I have been less oblique

Reply With Quote
 
  #15 (permalink)
Elite Member
Chicago, IL
 
Futures Experience: Master
Platform: Kinetick Ninja Trader <7>
Broker/Data: Ninja & IB
Favorite Futures: YM & Equities & Options & Mutual Funds
 
Posts: 174 since Jun 2010
Thanks: 56 given, 82 received

All good points. And general advice, and while I might have not read this in the previous posts... Before you enter, your assessment of the market conditions of the contract you are planning to trade should give you an idea if you're going for a handful of tick or a handful of points. If you're giving it back, you might be looking for points instead of ticks as a result of the current conditions in the market.

Reply With Quote

Reply



futures io > > > What is the best way to work out your profit target?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
profit target strategy on tradestation dirtybird EasyLanguage Programming 3 November 23rd, 2010 01:07 AM
Profit Target as Percent Gain ascr EasyLanguage Programming 4 November 17th, 2010 05:33 PM
Target Profit Beats Street on Improved Sales Quick Summary News and Current Events 0 August 18th, 2010 09:00 AM
where should profit target be placed? anniebee321 Beginners and Introductions 9 June 7th, 2010 08:38 AM
Protecting the cumulative profit target in an automated strategy nanobiotech NinjaTrader Programming 4 April 1st, 2010 12:24 PM


All times are GMT -4. The time now is 03:43 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.11 seconds with 20 queries on phoenix via your IP 54.226.113.250