Many people trade on a day to day basis not really knowing what they are trying to achieve except for making money. I believe it is essential though to have a daily/weekly/monthly outcome.
What I mean by this is a written set of trading goals that spell out quite clearly how many points you wish to make or how much net profit you wish to make. By having a written outcome you are more likely to have better focus and discipline in your trading day.
Is it worth trading past your daily target?
I know that trading can be really addictive, I belong to a live trading chat room where some members are there all day long, watching their trading platforms and often trading 8 or 9 trades a day…the result…early in the day they can have some excellent profits…I mean 200+points but then they slowly give their profits back to their broker! and end up wondering where all their profits went.
By having a daily or weekly target that you stick to,means that you are stacking the odds more in your favor to be able to hold onto your profits. giocare In borsa guides online Trading is a numbers/percentage game, sometimes by trading less means overall you gain more profits
The other part of this equation is to have consistency in your trading. Yes you may have a great week but this does not mean that you now know it all. I would advise all new traders (or anyone trading a new strategy to only trade using the minimum stake. Start low Do this for at least 2 months, if you are being consistent in your trading (not consistently losing!!) then up your stake incrementally every 2 months, ensuring that you are still being consistent.
WHY? Well many traders who lack some experience do find,the excitement and thrill to potentially gain huge profits is too much and up their stake after 2 weeks of successful trading ..oh dear…Not only is this not a long enough time to see if your strategy is working, and you have all the correct criteria in place to be successful but you are also forgetting that emotion plays a huge part of the trading experience. If you have been trading at £1 a point and things are going well- great ..incrementally start to increase this (£2, £4, £6) This will get your brains and emotions gearing up in the right direction too. By not doing this what happens?
Well if you jump from £1 to £10 just think how you are going to feel as your trade has a pull back by 10 points which means you are now£100 down! it is a totally different reaction to £10 down.
By ensuring that you have traded consistently -meaning you have been making x amount of points over,say, a 2 month period, you will have more confidence that your strategy is working. That you can make those points, therefore if you are trading at £10 per point you know with confidence that your trade will reverse or if it is a losing trade, that it is just one of those losing trades in the % of trades that lose. No panic, no sick feeling, no closing the trade early because you can’t bear to watch your money fly away. Just consistent professional trading