Profit Targets... Important Or A Really Bad Idea?

Predictable vs. Unpredictable?
Many traders and investors goals. Can be a goal to achieve a 15% profit annually. Typical
Although it is quite clear that the markets can not be depended upon for a "constant" rate of return, the question is, is it even a good idea to ask? Such targets
Would you rather have a stable yield of 15%, 15%, 15% in the next three years? Or an unpredictable return with potential drawdowns, say, -5%, +50%, +20%.
Assuming that the goal of 15% set for the next three years and you have an investment of $ 1,000 to start, 15%, 15%, 15% means in three years your investment would be worth $ 1,520.
But what about the unpredictable returns? -5%, +50%, +20% In three years will increase to $ 1710, your initial investment even if you lose your money. Throughout the first year spent
Catch A Trend, Let It Ride!
Market timers using trend following strategies as FibTimer.com do not want to try and achieve or force to meet the results for a set profit target.
For example, if we set a profit target of 15% and left one of the incredibly profitable short trades in the 2000-2002 bear market, we have significantly reduced our realized gains. Why join a trend at 15% and then sit on the sidelines watching the market go up another 60% or 70%.
In fact, we have no profit targets. Our goal is to make each tradable trend, and if we do, to make it as far as we can to close that carry trade capture.
This means that if there are no trends, we will not gain or lose any small. But it also means that when the market does trend, and history shows that the trends in the markets 80% of the time or better, we have to drive our earnings and take every piece of the profits.
Each Trend Trading
A problem encountered here at FibTimer, and we expect all faced timing services, the pressure felt by nervous subscribers. Believe us when we say that it is a problem. We read and answer all emails.
But here is our response to nervous subscribers. If we reduce the risk and reduce the volatility in our strategies, in order to minimize contractions (during those times when they occur), we also have a lower return in time!
There is no way to identify trends act without the risk that the current trend may be a false one. Loss risk used FibTimer borders and protects the capital, but sometimes, losses are inevitable.
By trading every trend, we are sure that we will make on board any money upfront, and any money making decline (bearish trades), that the future will bring. But you have to be around for the money making trend, and you have to trade, to realize when we took them. Profits
Lessons of history
Remember the crushing loss of 2000-2002. The Nasdaq fell 80% and the S & P 500 lost 50%. It would be (from the lows) to take to achieve. Its old highs again the Nasdaq 2.25% 100 years of annual profits Or to be more realistic would take the profit over 6 years of 30% per year to reach. To its old highs again No losses allowed!
What do you think the chances of this happening? It is now 2006 and we are nowhere near achieving it. But our aggressive strategies tagged 100% profit in those years.
It is important to approach you. Timing with this in mind If you're a month and then stop because you no profit, you are only fooling yourself. We will continue to make a profit over the years. Because we trade "all" trends that we "know" future profits will be realized. Years of experience and hundreds of years of market history behind us.
Be patient, follow the buy and sell signals, and the profits of the next big trend are yours. We do not know when the next trend will start. We do not know whether it will be to the upside or to the downside. While we try to look at the future in our weekly analysis sections, no matter what, we will exchange the trends. That is the key to success.

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