I only care about executing trades with great setups and managing them well. It makes sense that if trades were executed properly, the money would follow given a large sample size since you do not know the exact occurrence of losses incurred by any trading system.
- To me, setting goals to earn X percentage a day/month/week/year is unrealistic and not helpful. By setting goals, YOU are saying that YOU want the market to give you X percent every day/month/week/year. Truth is, the market does not operate this way. The market gives you what it wants to give.
- I have feedback from friends suggesting that 20% a week is ridiculous and starts to evaluate what is a “suitable” goal to set for each week. To me, that is illogical because I simply take what the market gives. If the market gives me 10%, I jolly well take it. If the market gives me 1%, I take it. Does this mean that you are a failure if you did not hit your “target”? The answer would be YES only if you did not execute your trades properly.
- Here’s why setting such goals isn’t helpful
o By setting a targeted %, you are subconsciously limiting yourself that that is the max you can accomplish. Eg. I want to achieve 10% a month
o By setting a minimum %, you are telling yourself you are a failure when you do not hit the target. Let’s look at this deeper. What happens if you executed your trades perfectly but just that your edge is encountering a losing period (any edge has such a period)? Does this mean that you are a failure? If the market is ranging and does not present much opportunities in accordance to your trading style, does it mean you are a failure?
o By saying that you must earn %, you are saying YOU know what the market would offer!