What is your daily Profit Target?

[candle7779]

Well, after some period of trading on Forex I set a daily target about 100$ and if I get this profit I satisfied and don't put other order for avoid extra risks. But if I begin to loose money I can get carried away and can't to stop in time. Could anybody recommend what is the best time to stop and what markers do you use for it?

 

[Maria08]

there is no hard and fast rule that how much you can earn daily from Forex trading but mostly it depends upon the amount of capital you have and your method of trading. if you prefer to take high risk you may earn more but you may lose also.

 

[ezrydn]

Not really aggressive here, Hayseed. I just have overcome the fear factor. I don't open trades and walk away. I sit on each one, beginning to end. With no SL or TP markers, I don't telegraph my intentions to any brokers.

As you've noticed, I don't function from within the box. I don't follow the rules to a "T." I do everything wrong. And end up smelling like a rose most of the time. When asked, I normally give direct answers, rather than generic ones. Pointed questions deserve pointed answers.

I don't expect many to trade like me. It'd probably drive them nutz. However, when I try something new and odd, and it works, I share the info. I don't seek an argument. If it works for me, that's enough. People are free to not test or test, as their comfort level allows.

So, I trade without emotion or a little cloud of doubt or fear hanging over me. I was faced with 20:1 odds in Nam, leading to a lot of hand-to-hand. When I got home, I had no fear. Ergo, my trading style developed as it did.

 

[prime]

In my opinion, I always keep my trading into 10 to12 pips. And do not take high risks. I think people should fix a daily profit. It would reduce the risk of loss.

 

[PaladinFX]

... Say, you want to make $100,000USD/yr. What would you actually have to do to hit that figure? ... However I don't stop trading until I meet my daily goal ...

Setting daily/weekly/yearly profit goals is one of the craziest ideas I have heard in Forex. I get what the market has to offer and it has nothing to do with the fantasies I can have about what markets owes me.

These two posts (the first and second of this thread, for those who want to read them completely) offer a nice comparison of somebody very new to trading and an experienced trader.

Setting time-related profit goals (especially in actual money, not even pips) is about the worst thing one can do.
It's a sure way to blow an account.

But, hey: thanks for the liquidity.


Cheers,
P.

 

[ezrydn]

Since all "pips" are not of equal value, and the MT4 shows profit in $$, why would I want to reference everything in "pips?" I strive toward my set goal every day. Many times, I can knock off work around noon or 1pm (I start around 6:30am). I don't "price chase," nor do I get emotionally involved. No need to. I may be running standard trades while Binary trading. I'll scalp for a bit, to fill my quota. And, I do none of it "by the book." It's sure working for dumb old me so there's no reason to change tracks. Plus, I've never experienced a "blown account."

I sorta like being the "odd man out." Yes, I'm new to trading, entering the arena last February. I don't claim to know most of what happens when I do what I do. All I know is it's profitable. I do things you'd probably never attempt. Why? To get real-time answers to questions I come up with throughout the day. I found out about "trading the WE Gap" via a mistake I made. A very profitable mistake, I might add.

No, my head isn't "in the box." It stays outside the box when I trade. And that's where I'm the happiest. When you speak in "absolutes," in only takes one oddity to override your position. Absoluters and naysayers are a dime a dozen in any industry. I'm like the BumbleBee. No one told me that my mass and "wing loading" says it's impossible for me to fly. However........ I fly!

 

[PaladinFX]

You reference in pips or per cent, because that's the only way to measure gain in a neutral fashion. You cannot compare the effectiveness of two systems by comparing gain in dollars or euros, unless both accounts

a) use the same primary currency;
b) use a fixed position size for each and every trade (which isn't feasible because it voids money management).

Which trade setup is better and more effective?
System 1: position size = 4.0 lots / stop-loss = 45 pips / pips gained = 15 / profit in USD = 600
System 2: position size = 1.0 lots / stop-loss = 15 pips / pips gained = 30 / profit in USD = 300

If you compare the two trades using dollar gain as your criterium, System 1 appears to be more effective, because it has made double the profit of System 2.
But it used four times the lot size (i.e. for times the margin) and had a stop-loss 3 times as large as the trade made with System 2.
If you now open a trade with System 2, using the position size and S/L value of System 1, you'll get the following result:
position size = 4.0 lots / stop-loss = 45 pips / pips gained = 90 / profit in USD = 3,600.
In conclusion System 2 is six times as effective as System 1.

This comparison method can be simplified (without the need to work out actual lot sizes, stop-loss values, pips and dollars gained) by simply comparing the Risk:Reward ratios of the two systems:
System 1 risks 45 pips to gain 15 pips; R:R ratio = 3:1.
System 2 risks 15 pips to gain 30 pips; R:R ratio = 1:2.
Set Risk and Reward in relation and you'll get 3x2 = 6.

Setting goals in absolute values (i.e. actual money gain) instead of in per cent (or preferrably pips, since this will allow the above effectiveness evaluation to be calculated without having to change parameters all the time) can easily lead to overtrading.


Cheers,
P.

 

[ezrydn]

Ten-thirty in the morning and already hit my daily minimum target. I had inquired about a new indicator on the market, Super Trend Profit, on a forum. Of course, the naysayers jumped on the thread. Then, yesterday, I found it on another forum and downloaded it. Started using it this morning and all trades hit their marks. It's a nice little indicator. Works well, too. Found it on FOREXISBIZ.

Paladin, I'll agree that you can do it your way and you can agree I can do it my way. Your way works for you and my way works for me.

 

[PaladinFX]

Ten-thirty in the morning and already hit my daily minimum target. I had inquired about a new indicator on the market, Super Trend Profit, on a forum. Of course, the naysayers jumped on the thread. Then, yesterday, I found it on another forum and downloaded it. Started using it this morning and all trades hit their marks. It's a nice little indicator. Works well, too. Found it on FOREXISBIZ.

Paladin, I'll agree that you can do it your way and you can agree I can do it my way. Your way works for you and my way works for me.

Well, that was not 'my way' or anybody else's way, but simply the (mathematical) way to calculate system performance.
It is not my personal opinion that you cannot gauge effectiveness by using absolute figures ... it's a simple fact.

Some people will put their trust in 'Holy Grail' Indicators/EAs rather than attempting to understand trade mechanics and methods. Some even get lucky doing this, for a few weeks or months, before being wiped out by forces they do not comprehend.

I can accept that ... not everybody is cut out to be a trader, after all.
As long as it's not my money at stake, I'm happy for the liquidity these people provide.


Cheers,
P.

 

[ezrydn]

How come it's "either/or" with everyone? Black/White, right.wrong? Does anyone in Forex remember what Thumper said? When I need chapter and verse, I know who to ask.

 

[PaladinFX]

How come it's "either/or" with everyone? Black/White, right.wrong?

It's not always black or white.
In this case it is, though, because it's purely about mathematics.
There is no room for opinion in maths ... something is either correct or it's wrong.

Does anyone in Forex remember what Thumper said?

Do you mean the 'Bambi' character?
'If you can't say samething nice, don't say nothin' at all'?


Cheers,
P.

 

[ezrydn]

Ever take Statistics in college? Or, better yet, Psychological Statistics? It's real math with a whole lot of opinion. As the old saying goes, "there's absolutely nothing that's absolute." Like I previously said, you skin the cat you're way and I'll skin it my way.

 

[PaladinFX]

I'll refrain from further comments on how to calculate system performance correctly, as my time is too valuable for fruitless discussion ... I've demonstraded a (simplified) way to achieve this in post #27 of this thread, so people who are interested in knowing how to do it properly have a reference point.

Let us both peacefully proceed as we were: you play around with binary options and 'miracle indicators', I trade forex.


Cheers,
P.

 

[ezrydn]

Best idea I've heard all day. I hope you're better at Forex than you are at converting people. Either way, here's more pips to ya.

 

[tradersam]

What you asked " A daily profit TARGET"! Believe me buddy many traders will get a life if they end daily with profit even a single cent because maximum loose in forex.

 

[ezrydn]

My question wasn't aimed at the generic herd. It's a personal question. A simple "Yes/No" works.

 

[hayseed]

funny lookin herds

My question wasn't aimed at the generic herd.

//----

hey ezrydn...... a herd of generic's..... haven't seen any of those round here..... they must be from austraila.....

//----

don't have a daily target myself, but there is a % that i'm pleased to get.... 1% per day.....

my definition would be 1% per day on the money deposited..... so if 1000 was deposited, only 10$ per day would be needed even if the account had grown to 5000.....

that is what i meant by, can't think of anything that would cause me to 'raise the bar'....... actually my goal is to lower it......

as the account grows, in effect the bar is being lowered.......h

 

[ezrydn]

Even 1%/day is a profit target. So, you DO have a profit target. You're using a compass WITH a NORTH needle. Whether it's stated in real money or percentages, you have a daily goal, per your statement.

 

[vebekkst]

Knowledge of Forex Trading Australia

i have no certain profit target, it can mess your trading if you ask me, but as long as its positive then i think its all gooood. even if its cents

There are numbers of people who are investing in the forex trading without knowing the risk of investing in the forex trading.

 

[hayseed]

pleased to get

hey ezrydn..... not really..... that is just a % that i'm pleased to get.... as i mentioned before, you appear to be far more aggressive in trading than me...... i'm kinda laid back..... my compass's needle has both north and south....

if 10 forex trades close today, i'm pleased.... if not, oh well..... maybe tommorrow......

i do have goals and targets, but time is in no way a factor....

my real money is made or lost in options and futures..... my goal there is 100% per trade...... it might take one day or 3 months..... i focus on percents, not time......h