Setting a Realistic Goal As a Trader
Setting precise trading goals can help to enhance one’s profit potential when trading the financial markets.
It’s crucial to set goals in our personal and business lives, and the financial markets are no different. Goals offer direction, something to aim for when trading the markets and give a sense of achievement each time a target is hit. This helps us to have a goal achieving mindset most especially for a trader
I believe that goals are important to have in any area of your life. Whether it be related to your health, finances, work, hobbies or trading goals.
They keep you focused, enable you to track progress and give you a great amount of purpose and fulfillment when achieved. As Earl Nightingale said, “Success is the progressive realization of a worthy ideal.” I.e success is having worthwhile goals to work towards.
UNREALISTIC TRADING GOALS
I often hear new traders say that their trading goal is to make 30% ROI per week. Or 50% to 100% per month. These types of goals are both unrealistic and can be counterproductive.
I am a day trader & swing trader. In my own opinion setting a realistic target will put out so many fault in your trading most especially Over trading. In a situation when you set a target of making 100% ROI in a month, in this case it could cause you to over trade after realizing you haven’t even made up to half of your target. You will start over trading and also risking too high per trade.