Thanks id4trade,
1. Glad you are doing well in trading even though you consider yourself a beginner/learner. Having this mindset, is a way of the winner.... as one is constantly observing, learning and adapting to the changing markets and times....
2. What is a fair amount of profit
per day is difficult to say. For an experience trader, in a well trending market 5 figure return is very much possible, while on days the market remains in a narrow range, it would be good to scalp 1-2 or 3 thousand. On such days, even going home positive is good, as it means one has understood the market, and not taken unnecessary risk or traders.
3. How much a trader can make in a day overall should be answered in the context of being able to follow all the signals, and rules. However, many times there are contradictory signals... stocks may seem to breakout, but in reality they may be face resistance and reverse. Here, flexibility and good risk money management comes into play. And this comes from experience. Which going back to the question of returns will vary - depending upon instruments traded, and % of capital used.
4. You have not mentioned instruments you trade in... as returns will vary if one is trading plain vanilla stocks, or stock/index futures or options.
5. Alike you, I too used to stop or restrict trading rest of the day after meeting meeting the target, but many times, markets give opportunities which we must take.... So in the former case (where one stops trading after meeting targets) the returns will be consistent, however, if one is trading for full session, the returns will surely vary.
6. Finally, one cannot have a fixed target every day
irrespective of market conditions - unless the targets or returns are much lesser compared the capital.
7. And to answer your question - It is my view that a trader with 5 years of more of experience must be able make
atleast 50,000/per month (depending upon the capital... But while one is in a learning stage, it is o.k. even if one is
profitable for 2/3 weeks and for the month. As long as the head remains above the water it is fine... It means the trader follows good money and risk management plan.... So during the learning phase, even 3, 5, 7 or 10 thousand, on a capital of 1 lac.... are all good returns.
8. Just to add : A trader will master trading and discipline when having a
small capital.
This is a must in my view. Just like a person who has learnt driving, cannot be handed over keys to a sports bike or a sports car, a trader will be forced by the circumstances to trade small and with discipline with a small capital. And in the case of not doing so, blowing a smaller trading account will cause less psychological and financial damage while reinforcing the lessons, and will enable the trader to get back on to his feet and trade without blowing out large sums of his resources. So target in the initial phase should be consistency, good risk management, and execution of strategy.
Just my view...
Dear @DSM,
Thankyou for the guiding light, I do follow most of the above said points.
But still what should be deemed as a fair profit percentage per day / per trade for an intraday trader.
I will honestly tell you my case, If i stop trading after my first half percentage win, then I might be a winner everyday.
But then I am still in learning mode and trying to increase my per day profit percentage, so I test a lot of different setups and then that half percent win go to loss.
Also I am curious on what should be an average fair profit book percentage per day /per trade?
Like currently I only try to get into trades where I can book minimum 2% profit. Here again if, and when I only go for simple vanilla .5-.7% profit opportunities I am a winner 8 out of 10 times.
But in this scenario, I have to increase my number of trade to increase my per day profit, more trade mean more risk.
Since I am in learning mode hence try all combinations, but later in life will eventually settle for a certain percentage of profit book and look/hunt for only those.
Hence asking what you seniors feel is the average percentage profit book opportunities available in market generally and should be called realistic and achievable per day / per trade.