Goals are crucial in achieving success in anything, and currency trading is included. However, forex goals can be problematic because humans typically set them too high and out of the realm of what’s realistically possible in less time. For example, you cannot be a full-time forex trader if you know nothing about it.
While it’s right to have impressive futuristic long-term goals, it is hard to abide by them if you don’t work on them at root levels and break them down in a shorter time frame. Doing this will preserve you from having a clear vision and keep you on track.
The leading mistake traders make while setting forex goals is that they place so high that they fail to achieve them and get exhausted financially in six to twelve months. This occurs due to the fact they aren’t sensible with their goals. Let’s talk about some practical buying and selling forex trading goals you need to have to continue to rock the field of the forex market.
Forex trading goals of the individual trader
- Lower Your Expectations.
- A pro trader’s 20% annual profit consider a success.
- Don’t live from trading right away.
- Be a part-time trader and then a pro trader.
- Plan each trade as the leading forex goal.
- Your goal is to observe the market.
- You need to love trading as a passion.
- Follow fundamental news even if you are a short-time trader.
- Plan to work for a prop company (even as a remote trader).
Forex trading goals of the professional forex trader
The primary goals of a professional forex trader include the following:
- Profitability: The primary goal of a forex trader is to make a profit by buying low and selling high in the foreign exchange market.
- Consistent growth: Forex traders aim to consistently grow their trading accounts over time through intelligent and informed trading decisions.
- Risk management: Forex traders must effectively manage their risk to preserve their capital and ensure long-term success.
- Improvement: Forex traders should continuously strive to improve their trading skills and knowledge of the markets.
- Independence: Forex trading can offer financial independence, allowing traders to work from anywhere in the world and control their income.
- Diversification: Forex traders may also use forex trading to diversify their investment portfolio.
- Fulfillment: Forex trading can provide a sense of accomplishment and fulfillment for individuals who enjoy the challenge and excitement of the financial markets.
Forex Trading and Lower Expectations
Beginners traders dream of doubling money after the first month. However, professional traders dream of earning 20% from their portfolio at the end of the year. This difference between professionals and retail traders will blow up accounts very soon. Realistic expectations are the most critical forex goal.
The best thing you can do while starting as a beginner forex trader is to have more knowledge about the field and how to make the best of buying and selling currencies.
See more about forex trader characteristics and responsibilities, and expectations in my video below:
The first intention you need to have is to change your mindset to learn and not just make money. Learn as much as possible, so you don’t lose money and get longer-term success.
Well, this doesn’t follow absolutely everyone, of course. However, if you’re an amateur forex trader simply beginning out, it would be sensible not to count on making a lot of cash or an ‘income’ from trading. These early years are your education period; you should pursue your learning phase as nicely as possible. Try it out by trading on a small account and continue rising in size with time.
So, the lesson here is that as a novice trader, your practical aim is to treat your forex trading account as a studying exercise and not just a money-printing tool. Like in any different profession, be it sports, entertainment, or anything else, you can’t assume things and research a bit. There is nothing like overnight success in any field.
Don’t Expect to Earn a lot of money immediately.
Once you’ve completed some basic stuff, learned about forex, and practiced buying and selling for a while, you will be confident to begin growing your risk appetite per trade and be ready to dwell in the real world of trading. Though again, it’s just the starting point, and you are far from becoming a full-time trader, and here is why.
Most forex traders will begin with an account beneath $4000-5,000. To put this in perspective, you’d have to make a 1,000% return on that account annually to make a living. A practical aim would be to turn gradual and constant gains, hitting ‘singles’ and ‘doubles’ to construct your account.
A fifty percent to a hundred percent return per annum will be a practical return if you hit the numbers. The intention is to make an income and not to make a living. Thus, don’t blind your eyes to the enormous expectations of minting money.
You don’t have the cash or the capabilities yet. As defined above, you can’t make a dwelling on a small account; however, you can and must attempt to construct it up. The buying and selling mindset should minimize loss and try to be consistent to earn a profit regularly. Also, do not take too much leverage or debt, as over-trade or over-leverage are risky and can result in opposite outcomes.
Start as a Part-time Trader First
As we mentioned above, most human beings can’t and won’t obtain a full-time trader’s reputation in the early phase of their career. So, a good starting point can be to turn into a part-time trader first and try to earn more than your full-time job income. There are many advantages to this, as it will boost your confidence and give you the stability you need to become a full-time trader.
If you manage money in some prop trading company, you can earn 10 to 20 times more than individual retail traders. Set a forex goal to work as a prop trader one day!
Try to Shift Being a Good dealer.
Whether you are a novice or a pro trader, you need to focus on buying and selling and turning into a better trader by learning various techniques and tools like technical analysis, fundamental analysis, etc. You can try to beat other traders. That can be your added advantage.
A dealer should focus on trading and not solely on income and rewards. The fundamental purpose for this is that the primary way you can end up a worthwhile dealer is by becoming a professional trader. You can’t do that if you’re too concerned about making money because you will trade emotionally. Emotions and markets don’t go hand in hand, for sure.
Observe the Market
Another sensible step you ought to take is to observe the market and take notes of when and how it changes so that you can get high-probability results. You don’t even need to be in the market for this step; you can observe it without putting a penny in it.
The foremost fact remains that most traders lose cash because they over-trade; they are definitely in the market too much. Losing trades make them emotional, and in that state, they make more wrong trades, resulting in a disaster. It takes self-discipline and endurance to exit the market at the right time, even if you are making a loss, as just like profits, losses multiply, too.
Make Trading Your Passion
Those who make money from the forex market love trading, are passionate about it, and work hard to achieve their forex goals. A football player loves the game, has taken training for the same, and has practiced it for years; just like that, to fulfill all the forex trading goals, a trader has to dedicate themself to it. Be truthful with yourself, and love what you do! That’s the only shortcut to getting success.
If you are a full-time trader, you would know that to achieve focus and productivity, a good workspace and, in this case, a good trading desk setup plays a vital role.
Every trader has a unique sense of styling, from creative to monochrome; you can choose what suits you the best. You can match your home trading desk setup with your favorite theme or working style. This article has covered some fantastic tips for managing your trading desk setup.
Reflect on Your Trading Style
One of the traders’ common traits is having more than one monitor, and there is nothing as many of them as a trader. It is essential to glance over multiple tickers and make trading decisions rapidly. However, some traders trade using their laptops or desktop, considering that nothing can beat simplicity. So, choose what suits you.
Solid Internet Connection
Losing a trade due to poor internet is the last thing a trader would want to lose a business. Using a wired Ethernet link works well, but wireless equipment is getting more demand and reliable. You can also choose an internet connection with ‘turbo’ speed if you want to.
If you have a home trading desk setup, you should have a separate room or space for your trading to avoid getting disturbed by your family members. You should decide a particular time for your trading and convey the same to your family members. Also, please do not use your mobiles or other devices while trading, as it can lead to a lack of focus.
Try to be comfortable.
Apart from the trading desk, the chair you sit on is equally important. If you are not comfortable, you will not be able to pay enough attention. Thus, you can put in extra cushions or have technologically advanced chairs for your comfort.
Ultimately, it is all about your comfort, focus, and suitability. Listen to yourself and follow your intuition!