Trading the Forex market implies doing a lot of challenging things, some of them too overwhelming from time to time. Because of that, there must be something that keeps our focus on the target and the motivation elevated, even when bad times occur. Setting forex trading goals is one of the most simple and common methods to do that and we would like to share a few things about how to do it properly.
Think in percentage terms
Beginners get into this field enthusiastic and full of energy, thinking they will make $10,000 or $50,000 in the next year or two, they’ll have a lot of money and financial independence. Their dreams come to an end once they realize how challenging trading forex is and gradually, the motivation is gone.
If you want to approach things professionally, you should not think about making an X amount of money. In exchange, set percentage-based goals, like “I want to make at least 5% profit per month, or 80% per year”. This way, you’ll avoid falling into two important traps:
- Thinking about money will trigger emotions in your brain and will distract your focus;
- It also creates a tendency to take big risks after a losing period.
Focus on habits
Our second recommendation when it comes to setting forex trading goals is to think about developing habits. Instead of saying “I want to make an X amount of money”, why don’t you focus on small tasks that can improve your profitability in the long run? Whether it is about managing risk, how to open trades, how to trade market news, or anything else, successful trading is a series of habits that in combination lead to consistent results.
Sacrifice short-term gratification
This advice is in particular for those traders still in their early phases. Whether you like it or not, your first few years will be very inconsistent and the probability of making consistent returns is low. It’s not impossible, but generally speaking, it takes time to develop the skills needed to trade successfully and consistently.
In order to keep your motivation high, sacrifice short-term gratification, in order to have a better performance in the future. Manage risk carefully, use hedging strategies, trade with caution, and be very selective with your trades. Otherwise, your trading will be like a gamble, with all the odds against you most of the time. Take into account all the information we’ve discussed in this article because that will ensure your learning curve will be smoother.