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 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 to scalp
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 an good,
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.