Have a business plan also. Those 50 yearly trades should equal 100% gain, trading the big boards for 6% a trade and 1 in 3 trades closed as a win.
It's all in the numbers.
50 trades / 1 win in 3 = 17 wins x 6% = 102% gain per year.
Say one starts with $25k, they should end up with $50k at least. Adding in 2 of each 3 trades with a 1 early capital preservation exit win (under (6%) say 3%) and keeping acceptable losses 1/2 the gain targets traded, in the 3rd loss trade. (or 3%) the 2 out of 3 non target wins, wash out.
Those 2 out of 3 trades give the business plan the ability to plan an income range. Always start a plan with what's needed, the rest is cream, based on ones trade style risk level. When trading with a preserve capital mind set. Early exit always beats early entrance, with the 2 non wins traded. First signal of red, in any run, exit.
Now reverse engineer the numbers, using wants, needs, and goals.
Need 100% ? want 150% ? Goal 200% ?
Increase/decrease number of trades or 6% gain target. When portfolio cash is always a constant.
Bang one has a yearly business plan begining.
I have 25K, need 25k, want 37.5k with a goal of 50k, yearly income. I'll trade 3 stocks, 17 times, in the 5 to 10% average gain market sector. Or small to mid cap areas.
Bang start of a business plan. Stick to the plan and adjust as needed, only to preserve need. Experience has taught me chasing goal increases risk. Be happy with needs. And love success above that.
