When a trader first starts out in their day trading activities, they will usually start out with little or no idea of their trading style.
Set a Per Trade 4 Target Profit or Trade the Charts?
If you are wondering if you should trade4target.com the charts or set a per trade profit target, answer the following questions:
� Do you find yourself unable to hold onto trades until you are stopped out based on your strategy?
� Do you find it challenging to make a profit on a weekly and monthly basis?
� Do you have erratic trading results of up and down days?
� Are your emotions running wild when you are in your trade�s?
� Do you find that you are stopped out right before your trade goes in your direction?
If you find yourself saying yes to the majority of the above questions, you will want to trade for profits until you are able to get on a winning streak.
How to Set Your Per Trade 4 target Profit
The first step in setting a per trade for target profit, is to analyze your last three months of day activities. Next, observe the maximum profit you would have made per trade with the highest frequency. For personal day trad ing activities, I began to notice that trades generally went in direction two percent of the time on 2/3 of trades. You will have to be honest with yourself throughout this process. Remember, the key is not setting some arbitrary profit target, but one that fits your trading style and risk profile.
Executing the Trade 4 Target
So far we have only discussed the profit, the flip side to this is that you will have to set a stop limit order as well. There is a general rule in the market that you should set a 3-to-1 profit to risk ratio; however, if you notice that your trades require more room for you to hit your profit target, give them the space they need.
