Daily Trading Targets
There are many people out there who like to trade the shorter time frames such as the 1, 5 and 15-minute charts, and maybe even the 1-hour chart, and some do very well trading this way. However is it a good idea to set yourself daily targets every day?
Well in our experience you have to trade what is in front of you, which means that you have to take the current market conditions into consideration. There will inevitably be times when the markets will be volatile and you can find lots of good trading opportunities using your usual trading system. However, there will also be lots of occasions when the markets are very quiet and barely moving through the day.
When this happens it is generally best to stay on the sidelines because as soon as you start trying to create winning positions out of nothing, you will almost inevitably start losing money. Successful trading is all about using technical indicators to help you identify high probability trading opportunities. So it is obviously not a good idea to abandon this strategy and start taking impulsive trades on these quieter days when the markets are flat, just to achieve your daily profit target.
By setting daily targets, you are setting yourself up to chase losers and over trade to reach the targets. One thing we cannot stress enough is — the market is ALWAYS right. I sometimes not trading at all is often better than opening a high-risk position.
Short-term trading can lead to impulsive trading ideas with very little market correlation or validation — or a very weak validation at the very least.
The most important aspect is coming out with a profit at the end of the week. You must be very strict about the positions. Every trade has to satisfy a certain set of criteria based on your approach and you must never deviate from this plan of attack.
If you do trade the short-term charts and like to trade a few positions every day, you should never try and force a position. If your usual strategy does not come up with any set-ups, then simply walk away because a break-even position is always better than a losing trade. If you forget about daily price targets and focus on building your account slowly and steadily over time, then you will do a lot better in the long run.
You can learn more about our Forex Masterclass here — https://www.alphaexcapital.com/free-forex-course