If my goal is 20% growth per month, should I ? - page 2
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So it means you are practicing a kind of martingale mm which is exactly my point that your way of thinking is not healthy
It's not a martingale as per say. Out initial monthly goal is still conspicuously the same. You see I never assume that I will hit 5% each week. It is about what if it does...
This.
Anyone that doesn't understand this should really study Statistics and Probabilities. (Or at least hear it from the mouth of successful institutional traders.)
He is definitely right on whatever he said about the market.
Why would you purposely stop trading? It doesn't make any sense. You shouldn't put a stop after you win X% for the day or for the month.
If your system is good, never stop trading. If your system is bad, don't trade.
As far as using TP - you do it in positions because you "understand" that the market typically doesn't move in the same direction for too long - and you're hoping to close it before the direction changes.
Having said this, some traders don't even bother to use TP, and instead just use SL + Trailing SL, and let their positions grow, taking more risk as they grow, until their TSL closes it for them.
If during your first week of the month, you've reached +20%, it probably means that there's a lot of turmoil and volatility in the markets.
This is great news! It means your trading system got the first week right, and that the market is probably going to continue having a good amount of volatility for you to trade.
Just make sure you adjust the risk, and therefor, the size of your positions: if the volatility in the market has doubled, the size of your positions should now be half of what they used to be.
Implied Volatility is your ally.
If the market was depending just upon your monthly target, you would have been in other place now.
Sorry, but the question is nonesense. The market is not there to comply with your targets, don't push it above or below, just learn to take what it's willing to give. The market is not your employee.
If your assumption about the market was correct, a decent answer to your question could have been also: then rasise your target, take more. If you got more, take more, if you got less take less.
Forget your targets, because sooner or later your targets will be beaten by the market.
Sorry, but it's experience + simple logic, you can as amusement play with those assumptions and polls but it's not related to reality.
* the bottom line of my point - change your views about the markets, sooner is better. It is not there to pay your monthly checks.
** same question with passimistic spirit: what if on first week you lost 5 percent? Now, what? target for 26 pct in the remaining 3 weeks?