Do you have goals and targets? A daily one maybe? Possibly a target ROI % (Return On Investment) for the day?
It’s one of the first things new traders focus on.
A little while ago, one submitted a question about them for the Followers Q & A Videos. In a little more detail…
What Daily Targets Should You Have?
One of the followers said it best when they said this:
It’s a very reasonable comment. As terminateDMC says; it’s about the pressure suffered.
When you start to put unnecessary pressure on your self, trading changes. It’s the very reason that so many people start to struggle once they upgrade their stakes. It goes something like this:
Consistency > Increase Stakes > Succumb to Pressure > Erratic Results > Panic > Confidence Dented
In the worst cases, some start to convince themselves they no longer have an edge. Yet once they lower those stakes (or reduce the daily targets) they return back to the original position of consistency. All-be-it on lower stakes than they may have liked…
It’s a tricky one on the mind.
This is why the increasing of stakes often results in pain. It has to be gradual.
Jumping from £20 to £200 is going to be extremely hard, unless you have a large advantage on the market.
Setting daily targets is no different. Due to the nature of trading, results are going to vary. One day you might make double the day before, where as the one after you may make significantly less. Getting away from that ‘£ per hour’ outlook you may have experienced outside of trading is a good thing. Take the pressure off, give yourself a chance!
When you think about it, one day is a very short space of time. Isn’t it?
If you must have some kind of target, set it over a month or even a year… it will really help you iron out those emotional responses too. Having longer term targets only, not obsessing about your balance and focusing on the trading in hand is literally a win-win situation. There is no downside!
Realistic ROI %’s?
Next up: what’s a realistic return on your investment? (ROI).
I think my thoughts become obvious quite quick in the video below… but it’s a bit of an endless question.
Humans are inherently results focused, I know. But the nature of trading betting exchanges means there isn’t often the chance for a very long-term trade. Again, re-iterating the points above. Would it be fair to measure ROI on small, fickle markets that can be so volatile?
Personally, I feel various terms and sometimes tools as well have over-spilt from other forms of trading. ROI is just one of them! For me, another would be stop-losses… In horse racing at least.
Comparing the likes of Forex and betting odds trading just doesn’t make sense to me. They differ wildly in volumes, behaviours and returns. Sports trading is fast, erratic and high-paced. It’s half the appeal to most…
If you want to see my original video answer, hit play on the clip below!