Taking Profit
(how to grow a small account)
Back in the lesson The Index Card, we went over why goal setting is vitally important in life and specifically, trading. Now we are about to reveal a secret on how to focus on the big picture and increase your profits.
Having a P&L goal for the day, week, month and year is important however what is more important in each individual name are the percentages you make in them vs the percentages you risk in each trade.
The percentage goal is more important because anyone with a little money in their account can throw up big P&L. However no matter how much money you have, making 30,40,50, 100% in a name takes a little more than just luck. That is why we focus on the percentages. Most standard index cards have around 11 lines on them. I set mine up as follows: Starting with a 5%+ line, 10%+, 20%+, 30%+, 40%+, 50%+, 60%+, 70%+, 80%+, 90%+, and finally 100%+. Now when you’re starting out, it might be easier to start a little smaller, for example 1 to 11%+ as you can see below. Then after you start to check those off, you can keep increasing those same goals as you progress (walk before you run.)
Index Card = % goal
Learn to lose (small)
For a shorter term goal setting perspective, this is as simple and effective as possible. Now the highest achievers not only physically write down their goals, they show someone they trust their goals. The people who do that are most likely to achieve them. If you have balls, state a goal you have in the Group Chat or PM a mentor.
(Pro Tip: That’s how our Alpha members earn their Trading Experts Shirts when they exceed their goal.)
Do you have balls?
Post a picture of your index card to keep track of your percentage gains.