I’m not a day trader per se, but I believe there is no golden rule to book profits. If you maintain a journal see what is best overall for your style of trading by going though the data and follow it.
For example, you can have fixed target, you can either book profits or trail using ATR or a MA or price structure etc.
Simple have an exit indicator. I have 2 exit indicators. One to immediately take me out of bad trades and other after I take profit on 1 time ATR let me ride the trend till it ends.
If you are asking how to say for sure trend has died down and you need to exit then use hekin ashi . Green means long red means short,(easy to distinguish). Don’t use this as entries, it works terrible , use it only for exits it works well. When you see candle flips color exit.
Note:- you can never catch the exact very bottom or top of a trend.
I said this in detail in other post that I got 6% trading from December to February, with so very dry days and some weeks not trading at all. But That’s solely trading crude oil barrel futures by buying and selling ATM options. I guess adding gold, silver, nifty index might change the returns.
Btw what do you mostly trade? (Everyone here mostly trades equity , I don’t even find a single MCX commodity trader😅)
If you want to compare try beating the nifty index yearly returns 10% or even bank FD 5.5%.
Frankly speaking you can never have targets of each trade because the market itself is highly inconsistent. You can be 100% be sure ATR value will be reached if trend is strong but cannot say how many more pips you can get in a trend. That’s why it’s best to use exit indicator.
I began my “career” trading commodities - crude, aluminium,zinc, silver, gold, natural gas - all in mega lots. Mini was for boys.
Hell, i didn’t knew anything. Just bought subscription whatsapp - I think for crude some guy from Indore RJ. It’s crazy to look back, there were days with pnl 10k, 18k, which i thought was normal in stock market.
Crude inventories on Wednesday’s were jackpot game. I never mind 10k 17k losses. All was short-lived. Lasted maybe 2-3 months. Then advanced to the search for paid equity advisors.
Those years witness scores of many paid advisors - streetgains Bangalore to petty telegram advisors.
Things started to make sense, when I decided to do own my own. Actually, it never do make any actual sense till now. But I feel and I am a lot wiser now.
Well, now I don’t see 10k profit in a day, after being wise. Nor do I lose 17k in a day.
Right now, my transition is happening from a systematic side to a descretionary one.
Crude oil is damned underrated even till this day. Always trends always has volume, insanely resilient to news events , best to trade for intraday. The only time where things go crazy is overnight and weekend positions where some crackpot militant group blows up some pipeline in middle East or some wars among Arabs otherwise it’s amazing to trade.
Try this with crude oil. You can easily spot trends ,always has volume , high volume at opening everything a scalper needs. Just don’t take overnight positions or weekend. Avoid choppy markets and markets that moves sideways. Even natural gas is good too. Add MCXbulldex too. You are looking for markets with big volumes and always trends.
I have tested many systems past 3 years many things.
Crude oil :- always has volume , very resilient to news events , trends well .
MCX bulldex:- it’s a little resilient to interbank manipulation but good to trade with.
Natural gas:- same like crude oil. Though I didn’t make note of news events that affect this
Gold & silver:- markets go choppy sometimes , becomes trade able only with volume. Interbank manipulation is there, which is good as they give trends. Gold and silver are inversely correlated to equity & mainly currency.
Nifty index:- same like crude oil barrel. Some minor news events affect like some random covid scare but like crude oil it’s quite best to trade intraday. One thing to note is never trade during elections. There is some level of interbank manipulation as gold is inversely correlated to nifty.
USD/INR, forex (all currency pairs):- insane level of leverage . 1:1000. Used to be a time all crypto bro’s filled the forex space but since they went volume is not there much. But market does trend here and there only if volume is available. It can be very irritating to see sideways market for weeks at stretch because of less volume. Lucky thing is we quite know only one enemy exists here who moves price which literally the interbank.
Individual equity futures:- I never understood how people even trade this. Too many news events like earnings, interest rate policy, white paper frauds, management confidence etc, too many manipulation. I don’t even think it’s for trading but rather for short term investment.
It is and was. Trading crude oil barrel is lot easier especially intraday. There were lot of people that made money with mini too. Just that we can’t trade the same way towards equity or even forex or precious metals.
Try getting your returns something like this instead of expecting too much from single script or equity section :-
I am someone who only takes calculated risks so I do set up stop losses and take profits depending upon the amount of risk in each trade. I don’t want to lose money even if I had to sacrifice some profits for that. But I think it is perfectly fine if someone has a liberal approach where they persist on leaving with maximum profits even if they incur a loss in the process. Whatever approach works for you is indeed a good one when it comes to trading.