a daily goal but that alone is seldom the reason to cut off trading activity. I agree with the idea that you have a winning method or you don't...that you can trade or you can't. I usually have other things that I'd like to move on to, things that trading well allows me to do. I do think that new traders or that guys struggling with consistency could benefit from hitting a daily number and then reviewing each trade and set-up. I think that helps with confidence. I also think that many of the daily goals are anemic... based on a products trading range and the leverage that is typically applied.

I wonder, what is the metric that guys who have daily goals use to determine those goals?

I agree with almost everything you said, until you typed that line above.


We spend so much time searching for that 100% perfect system, that we often times forget about the natural tendencies and dynamics of the market in relationship to the trades we make and our reason for being in the business in the first place - which is to walk away from every trade with profit that is inline with what the market will yield.

Jane, is on her way to becoming a full-time trader, while her counterpart who was every bit her equal, will probably blow his remaining $5k, less than a month later.

To Jedi

You are exactly right in that post.
I am, by nature, A contrarian that also happens to be highly emotional, ADHD and impatient. So when I started trading, the first 10 years, I tried everything in the book to get and find an edge. The only edge that I found after trying everything was that I during a trade, I would take my profits quick and hold my losers. I could lose on a trade about 95% of the time. So I ditched all the standard metric and made all 3 of my massive negatives for with me.
I figured out that the only edge I needed was to use 2 main variables. Position size and to short somewhere near true short term upward exhaustion.
If You flipped a coin 10 times in a row, I would take the bet that there would not be 6,5,or even 4 in row of the same side. But what about the unlikely event that it does happen. Thats when I get out.
So if shorting a level, Im right only 50%. The odds are still in my favor because i'm near a temperary exhaustion high.
It has worked for 9 years very well except for 2 bigger drawdown periods. This last one pissed me off so bad
(-120k) that I decided to daytrade around my core short positions to offset retracements. And by using the same method on a shorter time frame. I make way more $ than my core shorts.
And this is with only reading time and sales and 3 standard charts with indicators.
Thats why i am here. So when I pick a range to short, I would like to have more confirmation as to the breakout direction. As of now, Its high energy and stress with sometimes 3 losses before I catch it.
But the strategy requires you to be able to believe in your heart without a doubt that its going up. And then hit the sell button. Plus my risk line in the sand is at about 1 point on ES, and firm...
I have a few things I monitor for breakout direction, But they dont happen every time.
I have to get my breakout direction above 70% so I can trade bigger.
Is there anything you that leans you one way with reliability?
Thanks

daily goals now is that I just don't care to or need to sit here all day. Sometimes when the tape is active I do, other times I want to go fishing or play baseball with the kids. If I traded like I used too I'd trade the european session and the US session till 11 am central or so. (a 12 hr day, or so) I would just rather do other things. So I guess daily goal is not the best term to use. Once I hit my number I am free to leave is probably a better way to describe what I do.

So that is consistent with your mention of the construct being a personal thing...because it works for the trader. However I do not agree with a target profit number that percipitates a quitting point out of fear of the give back...that is IMO an idea for losers...but if it works to help build confidence, who am I to judge?

Daily goal as a focus point...maybe that is better?

I mean if you are making money and you quit because of banking a small number isnt that the wrong psychology? Shouldnt that dynamic be quit when you have crossed a losing threshold? It used to suck when I would take profit because it was there while watching losers grow to behemoths because I was right and the market was wrong. Kill the losers little when YOU can still defeat THEM. Let the winners run, right? I typically trade with three units, the first of which is off at a primary target, the second of which is triggered out by any one of a couple conditions or changes to the price action and the third unit remains in place a la welles wilder SAR until the contr signal happens or the original stop loss is triggered.

Interested in other opinions, thanks all for commenting. DB

I believe having a $$ goal/day will reduce your edge and not enhance it though a weekly goal is ok.. The reason is because everyday, the market presents different opportunities.. some better than others.. IF you give up the great opportunities a great day presents and then have the same goal when the market is hard to trade, how does that help your edge? That's why I believe you always have to trade what the market gives you..

Small goals like $100/day is also difficult because it often requires you to trade 1 car.. who has the greater edge and R/R? the trader trading 1 car or the trader who trades 5 cars scaling in and scaling out? Who is more likely to get stopped out or give back gains from not taking profits or capturing a bigger move from the market?

Trading is all about an edge.. its basically gambling with an edge but even a small edge can make a big difference.. So the question is, do you have an edge in all the aspects trading requires?