Determine Your Forex Trading Goals and How to Achieve Them

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Determine Your Forex Trading Goals – A simple but effective guide

One of the most important things you can do as a trader is to determine your goals. Quite frankly, if you do not have some type of idea of what you are trying to accomplish, you will simply find yourself trading blindly, and probably impulsive. Simply put, the easiest goal to come up with is to be profitable. Obviously, you are not looking to lose money, but there are many nuances about trading that you need to think about before throwing money into the market.

One of the biggest mistakes traders make is that they come up with unrealistic goals. For example, there are a lot of products out there that will tout the idea of making a ridiculous amount of money. Recently, I have seen a black box system suggests that 50% returns per week were common. If you do the math, a 50% return is absolutely outrageous, as the compounding interest will turn $100 into over $1 million in just 23 weeks. This is not realistic, and anybody telling you anything different is obviously trying to sell you something.

Not all goals have to be based on returns. After all, you want to perhaps have a goal of sticking to your trading strategy. Or perhaps you have a goal of being able to trade just one particular hour out of the day. You can also find yourself trying to trade only long-term trades, more or less like an investor and as a passive type of business.

There is a multitude of different things that you can think of in order to determine goals, as some people will simply do it for entertainment, while others will try to make a living off of a larger account. Other people will use the account to grow money while adding money into it every paycheck, so that they can speed up the rate of compounding. Either way, you need to know where you’re going first in order to have some of the most important things that a professional trader can have: a trading strategy, a risk management system, a set of rules from which to operate, and quite frankly some organization to your trading day.