Quote:
Originally posted by falcon
There would be times when monthly return target are achieved before the end of month, just like the possibility of loss limit being reached.
Does the discipline factor apply in the case of achieving monthly target? Should operation be shut down if profits are achieved ahead of schedule if you are managing funds of clients? What would everyone do?
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Some firms and money managers shut down after the goal has been achieved but I think it is a mistake. It's better to base your trading decisions on what is happening in the market. Sometimes the market is in a bullsh!t sideways mode in which it can be hard to make money if the range is not clearly defined or too small. Other times the market is trending hard. I think it is silly to stop trading during a month when the market is really trending just because you reach your goal. After all, there will probably be times when you have trouble reaching your target, so if the market wants to throw money your way it's best to be willing to take it.
Just my 2 cents,
TRADERguy