So a lot of my friends are having certain targets of which are supposed to be achieved everyday but as for me, that is something I stopped doing. In this post, you are going to learn and find out if having a daily percentage or amount to be made does really work out based on my experience.
So what are forex trading daily profit targets?
Well, this is where you actually tell yourself how much you should be making everyday either in percentage or fixed amounts.
So how do forex trading daily profit targets work?
Well, let us say you deposit a $100 into a forex trading broker like Deriv and you tell yourself that you would like to be making let us say a 5% or $5 everyday. Well, this is something achieveable and can result into $150 profit in 30 days if you trade Indices which can be traded even on weekends. In total, you get $250. That is 150% in a month.
What happens when you fail to hit your daily target?
Well, its not that simple to always being able to hit your daily target because of many reasons. So what happens when in some days you fail to hit your daily target? or maybe in some days, you end up making negatives? what happens?. Before, I answer this question, let me ask a question. Is having a target neccessary? is it good? is it bad? I will give my own reasons below based on my experience.
Is having a target neccessary? is it good? is it bad?
Well, I can’t provide a simple yes or no answer to this question if you should at all have targets or not.
Advantages of having targets
- If you hit your daily target, you stop trading, therefore saving yourself from trading which would result in losses chewing up your profits.
- Incoporating a daily target into your strategy, would help test how efficienty the strategy is.
- Realistic daily targets makes trading a bit simpler than trying to make a million in one day.
Disadvantages of having daily trading targets
- If you fail to hit your target or end up making negatives, you maybe forced to trade more maybe even aggressively trying to compesate for the losses which may lead into more losses .
- Having limits may sometimes hinder you from using up all your pontential of trading more.
How has having limits or targets worked for me?
Well, I as I have said above, not all days are the same, sometimes the markets can just be so bad. In my experience, I have been able to hit targets and even make more and on some days, have been making negatives. But in the long run, the profits made from the days I use to make more than the targets, they ended up covering the losses. To summarize, this does work well in the long run. Don’t just let it control you. Learn to control your mind first.