With anything you do in life, setting goals and expectations is crucial. It keeps you on the right track and provides benchmarks to ultimately, obtain the long-term goal; being a wealthy profitable trader.
However, I've come to realise that setting these small benchmarks can actually be quite dangerous. Setting these too high or too unrealistic, we're just setting ourselves up for disappointment and failure from the pressure of achieving it in not enough time.
Usually, as a brand new trader, you quite quickly learn how hard trading is, from the performance aspect, all the way to the psychological aspect, probably the most difficult. Here are 3 trading goals that often lead to disappointment:
1) Learn Quicker By Taking More Trades
Taking more trades and being in the market technically makes you gain more experience, but it doesn't mean you'll learn how to trade properly any quicker than if you took fewer trades.
In fact, this dangerous goal and mindset will lead to overtrading, which we all know is a common pitfall for new traders, leading to failure.
Quality over quantity, you've definitely heard this phrase before, and this same rule applies in trading. Instead of being in 4/5 separate trades, focus on one or two trades, make sure you have many confluences in your trading, learn how to get that perfect entry, and everything else that comes with opening and closing a trade from start to finish.
2) Make $5000 Per Month With My $250 Account
Come on, who are you honestly trying to fool? I get it, after you've seen all these Instagram gurus preach that you can make so much money and you've finally decided to take the leap and open an account, you quickly learn that making $5,000 in a trade from 10 pips, requires a 6-figure account, which almost everyone does not have.
Medical students do not become skilled surgeons overnight. Apprentices do not become mechanics overnight. This same rule applies in trading. You, someone who just found out about trading through a couple of Instagram ads, do not become a pro millionaire trader overnight.
It's pretty absurd that some people genuinely believe that this is obtainable because I can tell you first hands myself, I've lost more than £20,000 before I made my first £1,000.
Like any profession, it takes years of practice and experience to develop the skills needed to turn trading into your primary income source. You're simply setting yourself up for disappointment if you try to fight this statement.
3) Trading Is All About The Money
The profits you make do indeed determine your strategy's effectiveness, but this doesn't necessarily dictate success on a day-to-day basis. Trading is a long-term skill, not something you quickly do to make a bit of extra cash for the day.
Instead of gauging daily success on how much you want to make, focus instead on monthly percentage profit gains. Instead of aiming to achieve $50 per day, strive to achieve +10% per month with a $10,000 account. This way, you can achieve that same target just over a more extended period of time.
Trading isn't just about the money you make, but instead the actual skill behind it. Being able to interpret data about the economy to your advantage and taking "educated guesses" as to the direction of a market. This can be done through technical or fundamental analysis or both.
In an environment that requires a lot of focus and concentration, getting rid of this unnecessary baggage takes a lot of weight off your shoulders and, in the end, becoming a profitable long-term trader.
A potential stock market surge could be gearing to happen soon as investors and analysts stay bullish. Some analysts are calling for a bottoming-out soon where price finds itself at a key level of support. Buyers look like they are ready to step in although stuck in volatile behavior that is rocking the discipline of […]
Gold flies higher today amid inflation concerns in the US and globally. Even as treasury yields hit a 2-year high, the metal jumped above a key resistance level and is looking to test another. Gold Outlook Although we are seeing considerably high gains for gold in the short term, it still seems unlikely that the […]
One of the most common questions we hear from beginner traders is "How Much Money Do You Need to Trade Forex?" and our answer is: well, it depends. The amount of money you need depends on your goals as a trader. Is your goal to make a lot of money or are you going to […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
A1 Trading Company
A1 Trading Company is a financial services and media business founded in Atlanta, USA.