Saturday, July 4, 2020

What should be your trading goals?

We often see new traders discussing their trading goals. Many traders wonder if making money is the only trading goal or how trading goals relate to the Forex currency market. Setting up the right trading goals is very important because it will help you to design your trading plan or strategy. In this article, we will try to cover all important information about how you should choose your trading goals.

As Forex is the most liquid financial market in the world, you can never accurately expect the outcome of it. You can never plan how much money you will make in a week or a month. Though long term practice will give you a rough idea of what could be your profit percentage in a particular time frame. Setting your trading goal is like constrain yourself with robust trading routine. That routine will help you not to over-trade or make insensible trades. Setting the right trading goals will improve your trading quality over time. You have to ask if your money-making strategy should be your goal.

Best trading goal

As a trader, your best approach should be to make the best possible trade and sentimentally detach yourself from the outcome. If you don’t, a losing trade can hurt you emotionally and will encourage you to take desperate decisions. Your mindset should be to become the best version of yourself as a trader. Set some benchmarks which you have to reach in a particular frame of time. Without long term planning in this market, you will get nowhere.

Don’t get upset when you lose some trades. Learn from the experts traders of Saxo markets. They lose money but they don’t feel upset because they know the proper way to recover losses.

Fewer trades equal to fewer mistakes

The best trader is not him/her who makes a lot of entries in a given time, but he/she who makes fewer trades with the least amount of losses. Novice traders have a tendency toscalp the market, as do many short term entries. This tendency often confuses them with their strategies. It doesn’t matter if you do fewer entries, but ask yourself, are you clear about the motive for those trades? If yes, then that’s completely fine. But if the answer is no, then stop immediately and think why did you make those moves. You have to be always clear with your action. Setting up a goal will help you to reduce the risk margin per trade. If you don’t structure out some goals, you might be successful in the short term but in the long race, you will see no finish line.

Professional approach to trading

Your view of the Forex market will decide how you will grow as a trader. Treating Forex as a business will help you to set your trading goals. Professional traders usually keep a journal and analyze all their entries at the end of the day or week. Reviewing your past trades is an effective way of becoming an efficient trader. Organizing yourself and revising your strategy before every trading day is angood, natural way to achieving your trading goals.

Organize your lifestyle

Tailoring your daily routine is very important to becoming a successful trader. Like every professional career, you should design up your day for everything. Some wise man says a successful man is not whom he who made a lot of money but he who finds time for everything he loves. Every day, keep some time to improve your motivational base. Sometimes you can read some books, journals or enjoy an inspiring movie. Going outside and doing some sports will also help you to build up your body and mind. 

Now you may understand the importance of trading goals to become a successful trader. Process-oriented goals with effective planning will always help you in the long term trading. Don’t get frustrated if you have some failures in the beginning. Stick to your process and you will shine like a star in the end. 

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