I’m trying to sort of develop my “trading strategy” or plan but I’m having an issue figuring out some numbers.
A little background is I’m pretty inexperienced, been demoing for a few days while reading School of Pips, just messing around with the desktop app and looking at charts.
What I’m having an issue is trying to figure out where I should stop for the day regarding profits and losses. I see numbers thrown out about really good traders making 10% a month, so I should try to aim to make 1/4 of that, and base my plans off that? It would be really cool if I could scale up with experience and maybe increase my profits by 2.5% a month for each year of experience I have. For example, first year I make 2.5% a month, second year I make 5% a month, etc.
My ideal scenario would be to make more money with my investment than an index like S&P 500, or even more. I could also see myself doing this full time considering I have around $20,000 saved up. Obviously I’m not experienced enough to even use this capital, but if I could go full time in 3-5 years, my capital would be a little bit bigger, provided I save my profits from trading smaller and keep adding to my capital through other ways.
[B][U]Basically in short, my question is what is a realistic and achievable percentage of ROI per month to aim for? [/U][/B]It would be nice to have an ideal number to shoot for each month, even though some months I will lose, break even, etc. I’d like to be able to say, “Alright, I’ve earned how much I need to earn today to reach this months goals.”