I'm fairly new to trading, and so far my experience is limited to 3 months paper trading. Recently I've started to make a lot of progress, in that I've actually had profitable weeks and my percentage of winning trades is rising.
Lately I've been playing with the idea of having a set goal of pips per week, and finding the most conservative way to consistently reach that goal each week. One way I've considered making this goal more achievable is by taking profits very early in order to drastically increase my percentage of winning versus losing trades.
I've been backtesting the Sidus system on hourly charts with this idea in mind, and my results so far have been positive. If I were to set a 10pip take profit on every trade I make, the vast majority of my trades would be profitable. Of course by doing this, I miss out on many points that could be had if I held the trade longer. However, my trading goals right now are fairly conservative since I'm a beginner. My main goal is 30-50 pips a week, which would only require a few winning trades if I took very low profits on each trade.
Is this a sensible approach to trading? Does anyone else take very small profits to reduce their percentage of losing trades?
Lately I've been playing with the idea of having a set goal of pips per week, and finding the most conservative way to consistently reach that goal each week. One way I've considered making this goal more achievable is by taking profits very early in order to drastically increase my percentage of winning versus losing trades.
I've been backtesting the Sidus system on hourly charts with this idea in mind, and my results so far have been positive. If I were to set a 10pip take profit on every trade I make, the vast majority of my trades would be profitable. Of course by doing this, I miss out on many points that could be had if I held the trade longer. However, my trading goals right now are fairly conservative since I'm a beginner. My main goal is 30-50 pips a week, which would only require a few winning trades if I took very low profits on each trade.
Is this a sensible approach to trading? Does anyone else take very small profits to reduce their percentage of losing trades?