Monday, January 5, 2009

2009 - Goals

Trading goals for 2009 are based around discipline and proper risk/money management. I need to be patient with my entries and exits, but at the same time cut the losers short if the setup isn't working as expected. I also need to keep in mind that with a full-time job, I don't need to trade every day and can be more selective on my setups. I'll also be focusing on trading in direction of trend. I love to take counter-trend setups, which work well on range bound days like yesterday, but fail miserably on strong trending days such as last Friday.

Regarding risk management, my plan is to keep risk per trade to 1% max ($225); preferably 0.5% ($112.50), and max draw down per day to $500. I don't have any set profit objective and the goal is to learn from my mistakes. Although I've done relatively well on the sim, trading with real money brings out a whole new set of psychological barriers that I will have to deal with. I may switch between real and sim accounts depending on how in sync I am with the market, and will make it clear whether the trades were taken in the real $ account or on sim, but I expect majority of the trades to be in the real $ account.

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