3 Must-Follow Rules for Setting Proper Trading Goals
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Performance - Plain and Simple. Today Rich asks such a great question that I will post it all. I would like to setup goals to measure progress. Is this a good idea? What can be reasonably expected as far as a rate of return? I hear about these great trading systems that will make me a gazillion percent return.
These are very low returns compared to what the people trying to sell me their products claim. Personally I am not looking to hit a home run. I'm more of the slow and steady wins the race mentality. I am trying to be realistic and don't know at what rate of return can be considered realistically obtainable? Could this be something that you could write a piece on? Your portfolio needs to have a diversified look and trading represents the speculative portion that takes greater risks and offers higher rewards.
It is important that you are realistic. The answer lies in your risk profile. I trading stock options how to goals three goals. My first is not to lose money. While this may sound ridiculous, we are talking about trading and losses are very real. I continually take money out so that I have to start from scratch. If I start to draw down, I cut way back and pick my spots carefully. Remember, the market does go down. To put it into perspective, any large fund would put billions into a program that could produce these results.
My advantage is that I can move quickly in and out of positions and I can adjust my exposure. The more money you work with the more normalized your returns will eventually be.
I have found that reaching for more opens me up trading stock options how to goals too much risk and it brings in too much volatility. There are years when I do better and that is a bonus. Given my past performance over many years I know this is attainable. I was able to unwind my positions and keep what I had made. I considered that a big victory.
When you can weather a storm like that it sets up the rest of the year. I have found that my style generates small choppy returns - and then I go on a run. Before you sign up for their programs ask to see a 3-year and a 5-year end-of-month brokerage statement.
If you find someone that will do it, let me know. I could learn from someone like that. These commercials have the affect of setting up unrealistic expectations. That is a fantastic return when you are moving large money. It is the hedge fund mentality and there goal is to reduce volatility through a variety of trading methods. There are also Wall Street traders who make millions of dollars a year.
Realize that they are working with an enormous capital base on a leveraged basis. As a trader you need to feel comfortable trading stock options how to goals the risks you are willing to take to generate the desired return. Aim too high and you run the risk of losing your money. As time elapses, you will know what to expect.
As for Rich, I think he has the right attitude. The problem is that most people only know trading stock options how to goals to be long. If you want to be a good trader you have to learn how to short. It might help other traders. I got suckered into one of these programs. It was a free class that Trading stock options how to goals signed trading stock options how to goals for. Then you had to pay a little fee for the 2nd class. It was three days worth of what you could do and how much you could make in the market.
I learned enough to loose alot of money. Now I know there is not a holy grail to trading. It is a learning process that takes time. So watch out for the get rich classes because they are the only ones that are getting rich. Bravo, there is no such thing as a free lunch. People get scammed every single day and their own greed gets them into it. I even started writing a book with my so called secrets, it all turned out to be beginners luck and then came the stark reality of trading and lost everything to mostly very bad trades, my timing was way off.
I have learn there is no such thing. But what i can do is do the same thing that they are doing. I can develop and market my own money machine. Trading stock options how to goals just take and learn the system and make trading stock options how to goals work for me.
That was one of my motivations for providing research. I want to be the guy people can count on. I have traded successfully as a professional for many years and it was my sole source of income. Learn, prove yourself and then if you want to teach, do it. Dedication, patience, discipline, creativity, and greed are inherent traits. It seems that all trading systems that we receive via mail promise high returns.
These newsletters,seminars etc are really what they want you to buy because they generate revenue, often several thousand dollars.
First, it is a great idea. Second, very few will do it. The guru image they have created would be lost overnight. If you find a challenge please let me know. I tried to get Mark Hulbert third party to rate my service and I sent him trade by trade results for over 8 months.
He said he was too busy to include any new results. In my Free Event I describe my systematic approach, I show it in action and then I reveal my current trades so that visitors can evaluate my analysis. As a newsletter writer, my best subscribers have been burned before and they do their due diligence before they sign up with OneOption. You need to be cautious and that is trading stock options how to goals I am very open about what I do. Before I found this resource, I made a ton of mistakes in not setting stops quickly enough, but I have no problem taking losses early now, and I trading stock options how to goals to relax more with back month options thanks especially for that wisdom.
This site is great; glad I found it in my first couple months of trading. I choose my strikes based on margin utilisation returns, for example: My question is, are you aware of any academic research that has been done to determine which level OTM strikes generally expire OTM? So I am interested in proper academic research that may have analysed these types of scenarios. You can feel like a genius with this strategy. There will be instances where you have to make key decisions each year.
You will go through prolonged periods where the market cooperates. However, all trading stock options how to goals takes is one major move to take it all away. I just want to make 50, dollars in a year or so. It all depends on your risk tolerance, capital base and experience. You sound like you have been burned. Attend my Live Event and I will show you around.
Read through my blogs and you will find that I am not a big fan of neutral trading strategies. Option Strategies - Trading stock options how to goals and Bad! Debit Spread or Credit Spread?