With the end of April fast approaching, I’m happy to say that I’ve hit one of the most important metrics I use in day trading. That would be reaching my monthly trading goal of $40,000 in profit.
This by far the earliest in a month that I’ve reached that benchmark, and it’s always a liberating feeling to have a few extra days to play within which I don’t have that figure hovering above my head.
Although that goal is just an extension of my daily target of $2,000, the consequences of reaching it before the end of the month are a bit more impactful than surpassing my target on a single day. While I might take more aggressive positions on a day I find myself up $5,000 or $10,000, surpassing my monthly goal has a more far-reaching impact to how I trade the following days of the month.
Having the leeway to tack on more profit or aim for more aggressive trades on a month is only part of the benefit. Reaching that $40,000 level also grants me some degree of patience, whether in finding high-quality trading setups, removing stop orders while I’m already in a position, or following up after some consolidation.
However, this added cushion to the final days of a month also requires just as much discipline as building it up. It took a lot of small wins to get where I am now, and I have to be conscious of that effort and not squander it by swinging for the fences on every trade.
Ultimately, what reaching these time-sensitive benchmarks signals to me is how well my risk management techniques are working and whether I can consider taking larger positions or staying in trades longer.
Effectively scaling in and out of positions and keeping my risk on a single trade within $2,000 are still essential daily practices to keep in mind. And, beyond this month’s goal, I have my annual metrics and my $1 million account challenge to keep in mind, both of which have prompted good trading behavior and bad trading behavior.
However, there’s no better time to step on the gas when you have fuel to burn, you just have to keep an eye on your destination to avoid crashing out.
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