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LESSON: Setting Goals

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]Having goals in Forex is just important as having goals in your everyday life.

Goals and goal setting is hugely important. When we are constantly trying to reach for something, trying to build, improve and become better, then we are always looking forward and we are positive. This is a great thing and we should be doing this in all areas of our lives.

Trading Goals are Different – Slightly

With our trading we need to be a little careful and that is why I have included this section.

These goals should motivate you to be a better trader and keep you going when times get tough.

Goals should be realistic, but at the same time they should stretch you as a person and as a trader and not be easily achieved.

Just the same as normal goals in your other parts of live they should be short and longer term.

However; here is an example short-term goal I see that is very common and is highly dangerous to a traders direct results; “I want to make $xxx every day this week”.

Another similar example along the same pattern is; “I am aiming to make 25 trades this day/week/month”.

Of course everyone wants to make money every time they go into the market and then clock off for their shift and everyone wants to be making trades all of the time. NO TRADER starts trading with the idea of watching charts and NOT trading.

What is the Big Problem?

But what is the problem with setting goals around the money we want to make or trades we want to make?

I for one have not a clue what trade setups will form tomorrow or the next 100 years. I know they will come, and all I and you can do is take them when they do come – NOT force them.

If we have goals we are racing or reaching for, we really risk over-trading and making trades we should be ever in to get to monetary or trade goals.

What Should We Do?

Our goals should always be set around the processes and things we can completely control that will have impact on our trading if we did them better.

For example; “this month I want to make all A+ trades” or “all the setups I take this week are going to be managed exactly to my trade management plan”.

Notice how these goals are completely within the trader’s control. Goals such as: “I want to make $1,500 this week” are dependent on what the market provides and completely out of the trader’s control.

This would be a poor goal to set because it could create pressure on the trader to over trader or over risk and then lose money.[/text_block][/op_liveeditor_element]