Realistic Trading Goals
In forex trading, Realistic Trading Goals are an important part of achieving success. However, goals can be tricky because people usually set them too high, out of the realm of what’s realistically achievable in an acceptable amount of time.
For example, having a goal of ‘becoming a full-time trader’ is not going to do you any good if you don’t know How to trade correctly. While it’s good to have lofty long-term goals, you will not achieve them if you don’t break them down into shorter-term, more realistically achievable goals. Doing that will keep you motivated and focused while keep you progressing toward your longer-term goals.
Let’s discuss some realistic trading goals you should have so that you can stay focused, motivated and on-track.
Learn to trade properly, with no expectations
While I appreciate that not everyone is a beginning trader, this first point applies to those who are starting out learning the trading craft.
The first goal you should have is to trade account to learn, not to make money. Learn as much as you can so that you don’t lose the money, leading to faster and longer-term success.
First of all, it doesn’t apply to everyone of course. However, if you are a novice trader who is just starting out, it would be wise not to expect to make a lot of money or an ‘income’ from trading. These early years are your training period, your pursuit of education as well as screen-time and the ‘school of hard knocks’ will probably result in breaking even or even in a small loss if you are trading the small account.
As a beginning trader, a realistic trading goal is to trade the account as a learning exercise and not just to make a profit. Just as with any other profession, be it sports, business or other, you cannot expect to walk out, learn a bit and become the professional overnight.
Be the Best Trader
Whether you are a beginner or a seasoned trader, you should have a goal of putting the focus on the process of trading and becoming a good trader, not on your account balance. Its goal is more applicable to your unconscious mind because you have to train yourself to be focused on the trade setup, the price action and the overall chart picture, as opposed to the money and profits that so many traders become fixated on.
‘Focus on the trading, not the money’, and a trader should focus on the actual process of trading, not on profit. The main reason for that is the only way you can become a profitable trader is by becoming a skilled trader, and you cannot do that if you are too worried about ‘making money’ because you will become emotional.
Become a Part-Time Trader
As we mentioned above, most people can’t and won’t achieve the status of the full-time trader in the early part of their career. So, the main goal is to focus on becoming a part-time trader and earning a good profit while still maintaining your day-to-day income.
Observer the Market
A realistic trading goal is that you have to stay out of the market as much as possible and only trade those trade setups that will allow high-probability results. As your goal, stay away from the market when nothing is going on and observe more than you trade.
The main idea is that most traders lose money because they over-trade; they are just in the market. This causes them to both lose money because they are entering bad trades and it makes them emotional as a result, basically starting a snowball effect of bad trading habits which you obviously want to avoid. It takes patience and discipline to sit out of the market the majority of the time and only enter when your trading edge is truly present, but this is the only path to making money consistently as a trader, there are no short-cuts.