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Determine Your Trading Goals
11-15-2014, 05:20 PM
Post: #1
Big Grin Determine Your Trading Goals
As everyone in trading knows, deficits certainly are a the main company, and you canat avoid them. If thatas some thing you have difficulty taking, then you shouldnat be trading. However, thereas a massive difference between losing big on a normal basis and losing little in a controlled trading plan. You already know that you must keep your losses small; the key is always to keep them smaller that your typical wins.

Letas look at a trading strategy that produces $300 in earnings for every win and costs you $200 for every loss. Now, if your weekly goal is $300, and if your first trade was a lack of $200, you then need certainly to make two winning trades to attain your weekly income goal.

I want to simply take this only a little further and actually break it down for you: youave lost $200 on your one losing business, and on your two earning investments ($300 each) then you make $600. Your net income = $400. Purpose reached. Today, END TRADING. Usually, youall wind up giving back you to the amount of money just designed to the markets. Lock in your profits!

Obviously, youare not at all times assured weekly with only one loss. Letas look at per week that starts off with three losses. With three failures, you are now down $600 ($200 each). So you will need to own three wins that end up in $900 ($300 each). Withhold the $600 you lost on the losing trades from the $900 you won on the winning trades, and your resulting net income is $300. Target accomplished. End trading.

aWait one minute a youare saying that I will achieve my aims with a percentage of only 50%?a

YES! Thatas precisely what Iam saying! Read the example above again: you lost $600 on three dropping trades, made $900 on three winning trades, and came out with a net income of $300. Which means that you could choose a losing business every STILL and other time accomplish your regular profit goals!

Because many traders overlook this important idea of setting weekly goals, I wish to stress this point again. They determine everyday goals, which produce a massive mental pressure, and then they trade markets when they shouldnat, and they drop.

Therefore letas just think for one minute that you do end up reaching a genuine winning percentage of only 50%. Now, whenever you start trading again on Monday morning, what're your likelihood of having a winning business? 50%! You have a one in two potential for meeting your regular profit target in only one, single industry!

So if your weekly profit goal DO be achieved by you on the very first trade Monday morning, what next?

Stop trading for that week! Just enjoy life! It doesnat get any benefit than that.

Remember, you need to adhere to your trading plan and your weekly goal. Don't enter into yet another trade after youave already reached your weekly goal; the chance that your second trade might be a losing trade is too good, and you would be giving your cash and profits back again to the market. In the event you require to be taught further about rockwell trading, there are lots of resources you can pursue. Over-trading and greediness are a traderas fall, so avoid them and stay glued to your strategies.

Now, you understand that you can perform your regular revenue target with a percentage of only 50%. As you improve in your trading functions, you ought to be able to still meet your financial goals and improve this winning percentage with time..
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