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1: When you reach your goal: Here we find that lots of novice traders/investors don’t actually have a goal. They trade with no real rhyme or reason and they eventually go broke. There is a saying “If you don’t have a goal, chances are you will never get there.” So have a goal. A: I want to break $ 10,000 account value this summer – trading. B: I want to make 5 successful trades. C: I will make 3 profitable trades back to back. I will pay my rent with the American gladiators logo shirt it is in the first place but money in my stock market account. I will make $ 3,000 on this position. Goals help us focus and with effort, we can fulfill our goals and have our desires. Make a plan, then play your plan. When you do hit your goal, sell; don’t hesitate. You planned for this. You know what to do.
2: When you hit 20% profit: They say you can’t lose by taking a profit. Traders/investors (traders more than investors) plan for a responsible trade that makes sense. Twenty percent is a great round figure because that kind of return is all you need to become and stay rich – for each calendar year. If you can make 20% on a single trade with out too much risk – this is icing on the American gladiators logo shirt it is in the first place but cake. A 20% threshold is ‘super’ for a short term trade. For a fast trade with lots of shares, you might aim for less % return. For long term trades (6–9 months), you might aim for 30%.
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