We are all familiar with Neil Armstrong – that, or our elementary school teachers are failing miserably.
Just in case you don’t know, Neil Armstrong was the first man to walk on the moon.
This was an amazing feat for a fledgling space program, and demonstrated our country’s dominance and superiority over the rival USSR.
However, the ideals held by Neil Armstrong don’t work for day trading. In fact, they are downright disastrous.
Neil Armstrong shot for the moon, and he made it.
Day Traders who shoot for the moon are liable to end up crash landing right after take off.
What do I mean? Simple. As a new trader just getting started, you will often see wild market movement.
You will see sudden 5+ point upswings, or huge 8+ point drops. It happens. And some people actually know WHEN it will happen (like myself).
The temptation is there to shoot for the moon on your trades. An inexperienced trader might see the huge profit potential available, and set his sights way too high.
They might shoot for instant returns of 30%, 40%, 50% +, calculating glorious riches right around the corner.
But the market is a cruel instructor. And an expensive one. You might hit lofty profit targets once, even twice. But eventually, “shooting for the moon” will likely catch up with you, and you’ll come crashing back down to reality.
Instead, why not aim lower, set your sights on modest returns, and gradually grow your trading account in a much safer way.
In fact, if you shot for a measly little 15% weekly return (which is easily obtainable, if you know EXACTLY when the market is going to move), and you compounded your returns back into your trading contracts, after one year, your trading account would have grown from $1000 to well over $1 million.
Of course, it is unrealistic to continue to trade more and more contracts after reaching a certain level. But you get the point.
You’re not Neil Armstrong. You don’t need to shoot for the moon. A 50%+ weekly return, while nice, isn’t necessary for you to be a successful day trader. A 10% or 15% weekly return is more than enough to steadily (and safely) grow your trading account.
The Guerrilla Trader
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