This article looks at setting different types of foreign exchange trading goals when trading the forex live market.
Traders enter the forex live market for various reasons, the majority being monetary. While this is logical, it is not the only goal you should set when considering trading goals. When drawing up a list of trading objectives you should keep certain considerations in mind. These points will help you achieve effective and successful trading.
1. Set goals about forex live trading, not forex profits
The first step when setting trading goals is to ensure they help you adhere to trading processes. Many new traders generally have a monetary goal such as the amount they wish to make in their first year. While this is admirable and indicates what you want to achieve in the market, you must identify how you will meet that target. The best way to achieve your monetary goal is by having a strong trading plan and strategy. It is recommended that you have goals related to the plan looking trading behaviours and adhering to them.
One important goal that must be set is adhering to your process. If you are considering more defined goals then you should set a target or ration for your process. For example, the ratio could be the number of times you utilise the trading plan against the number of times you diverge from it. When you have reached your process goals, you will find that the monetary rewards will be met on their own.
2. Keep the goals simple
Many new traders believe that more complicated goals and strategies will lead to a successful trading career. This is not the case, and it is actually simplicity that will result in effective trading. If you have a complicated forex live trading system, you will increase the number of weaknesses. By keeping things simple you are allowing for a user-friendly system that can identify any weak points easily.
This concept of simplicity should be carried across to trading goals as well. If you have complex goals, the chances are they will be difficult to reach. This can be disappointing and may lead to heightened anxiety and depression, which can lead to negative effects on trading. To avoid this you should restrict your goals to single sentences. They should also focus on a single aspect of trading and should not have extra ‘mini-goals’ as extra parts.
3. Planning specific forex live trading goals
If you find yourself experiencing difficulties with one particular aspect of the foreign exchange market, then you should consider setting specific or defined forex live trading goals pertaining to that area. The specific goals you set should target the exact aspect in which you show a weakness and difficulty understanding. For example, if you are unable to read charts with confidence then you must set trading goals regarding forex charts; or if you have problems remembering to place stop losses then you must set a goal for stop losses exclusively.