Realistic Goals for Forex Traders
In forex trading, goals are essential. They depict your trading expectations and aspirations.
When you start trading, there are a ton of questions which arise. "What trading method should I apply?" "Should I become a day trader or swing trader?" "Is this a right profit-target and stop-loss?". With all the info out there, it can be challenging deciding where and how to start.
Luckily, setting goals can help. However, setting realistic goals is what aids towards setting apart experts from rookies. Making money in the forex market is a two-edged sword.
Many traders desire a lot from trading, such as making a heap of pips in a day or a week, or filling losing trades with revenge trading. These traders are diverging away from realistic goals.
Setting realistic goals
In the beginning, traders want to calculate their profits in numerical values, such as "I'll reach 30% profit this year" or "I'll make $100 per day." It does not work like that.
When you have a specific numerical target, you'll try to achieve this goal, even if trading opportunities are not present. The market does not work according to your desires and always present you with trading opportunities. Sometimes, it is better not to trade than pour your investments in non-tradeable positions.
You have to realize whether you can achieve a certain target depending on your trading plan, risk/reward ratio, and your emotional behavior.
Many traders don’t see the results they want because they don't set a solid plan. Setting a certain daily or weekly target and thinking you will increase your profits, is not the mindset you should be taking into your trading journey. Your goals must be realistic and action-oriented, so you can more readily and easily achieve them.
What can you do?
In order to set realistic goals, it's key to know what you are aiming for. Carrying out fundamental groundwork before entering a trade is a part of a well-defined strategy.
If you're a beginner, you need to focus on the trading process rather than profits. This will help you gain essential trading skills so you can prepare for the long-term trading experience. It does not matter if you are on the losing side; the point is that you understand the process. You will gain knowledge on risk/reward ratio, setting a stop-loss, and trading with the correct lot size, which will be beneficial in the long run.
On the other hand, if you are a pro, having an outcome-oriented target will be helpful, like setting a pip target and continuing with an effective trading plan. You now know the ins and outs of the market, so you can set more realistic goals.
Remember, you have to learn the necessary skills to know what trading process you have to go through to achieve your target.
No matter what you want from trading, your end goal will give you a vision to work towards. The purpose of a goal is not solely to achieve it; it should raise motivation, learning, and confidence.
By setting realistic goals and having determination to achieve them, you can accelerate your forex trading experience.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.