How To Set Realistic Forex Trading Goals?
Goal: A goal is an idea of the future desired results that a person envisions, plans and commits to achieve. See, the definition is not only a desire, it is a desire that is followed by planning and commitment. Without planning and commitment, your desires will remain just that, desires.
Most people (like me) got introduced to Forex trading through social media and of course it was sold to us as the quickest and the easiest way to make money. Clearly, we were lied to and most of us have since found out that there’s a lot that goes in, in order to make it a success. In search of more information about trading, most people would attend Forex trading seminars which are mostly about “how to get rich quick and fire your boss”. Most people are just diving in without proper information on what they should expect or should be expected from them. I do not dismiss the fact that that can be achieved, but definitely not after 2 days of learning how to trade. Your mindset has to be in the right place as well. For that reason, it is easier to think that one can just be successful without proper planning.
Why are you trading?
This is the first question that you should ask yourself. You must first determine your WHY? Your WHY will lead you to determining how you are going to achieve your goal. You cannot think about achieving a goal without including planning. Now, you are on the right track, you are now planning how you’ll achieve your goal, be it short/long term.
How are you planning to achieve your Forex trading goals?
You need to know how you are going to trade your account (your trading method of choice). Once you have your method of choice, you’ll need to stick to it until you can master it. Successful trading is not only about the strategy but mostly about you. You’ll have to work more on yourself to develop self-control.
I’ve been talking to some of the traders that I personally mentor about why they trade. To my surprise, most of them do not have a clear goal of why they trade. Some of them do know why they trade. See some of the responses I got from them.
“I trade because I want to make money”
This response is not good enough. Of course we all want to make money but being clear about what do you want to do with the money that you want to make and when do you want to make it, is what you should focus on. That on its own can have an impact in how you develop self-discipline and focus.
“I trade for a monthly income to pay for my child’s school needs”
This woman knows exactly what she wants to achieve with her trading account and she has been achieving it for the past year. She is also not easily influenced by what she sees on social media or how other traders trade. Her why keeps pushing her to the right direction and her focus is on another level. She also has a full time job. It is highly possible to trade for a monthly income.
“I Trade So That I Can Withdraw A Lump sum To Grow My Other Business”
This one has a long term goal, she is trading and compounding her profits in order to withdraw for her other business. I also think that’s the main reason why she’s been doing so well for the past few years, her goal gives her the right push.
I can go on and on sharing the responses, but that would make this post too long. One more thing that I always say is that your Forex account must sustain itself. Your monthly data must come from your trading account. I hope you do get an idea of how you can also set your own Forex trading goals using the tips I shared on this post. Thank you for stopping by. Kindly spread the word by sharing this post with your peers.