On a monthly basis and greed itself? Does that make sense? I guess what I’m trying to say is, as we learn as newbies, most probably feel like they would like to reach their MAX potential in terms of percentage added in profits per month without crossing the line of being greedy, thus having it all collapse in the long run.
So where does that line lay?
Forget profit try to survive the 3 first years ,before you think about profit…
My best advice use only 0,1 % of you capital in each trade…
I forget ,If you like to playing with the numbers … 250 tradingsdays
0,1 % a day give 28 % a year
0,2 % a day give 64 % a year
0,3 % a day give 100% a year
Bigget deal is drawdown ,you keep them low with using so little of you capital in each trade
Good luck
Right, profit wasn’t the word to use. I guess what I’m trying to say - down the road, after you learned what and what not to do, but are still learning more. What do you aim for quantitatively per month that is realistic and not considered entering greed territoriality?
I’m a newbie as well, and i would like to hear a more experienced traders take on this, but i think you’ll know the difference between greed and profitability, when you start taking trades that aren’t fitting in your trading plan. If your trading plan has a statistical edge then you will be more profitable the more trades you take - as long as all of your criteria is met. For a quantitative figure i wouldn’t set a figure… some months more, some less, again depending on your edge and the quality of trades you get in any given month. I think this ties into the psychological aspect of trading… once you step away from taking a logical, calculated, and probability based trade then you’re getting greedy.
Noted, and I’m playing devil’s advocate here to produce more of a discussion on this topic. But say based on your input that a newbie starts out well based on what you spoke of, and is taking down consistent months on the plus side, now in his/her head he thinks this very well may be the norm (when for those with more experience might say he’s on the luck side of things right now or as we say in poker, running good) and he/she decides it’s time to push even harder for more gains…
You see what I mean? When does it become a slippery slope? Or does that just come with more experience you have to know when and say ok, this is great but let me dial it back a bit to keep things in perspective before human nature tries to take over my fundamentals that got me here in the first place.
Lucky streaks will and do happen all the time. As long as the trader maintains his discipline;keep you lot sizes and SL levels within your normal range. The moment they increase their exposure, luck runs out and what follows after is nothing short of a disaster.