How does a forex trader reach their goals in forex trading
Every forex trader has a long-term goal of becoming extremely wealthy through the markets. The majority of traders aspire to trade full time, quit their jobs, and enjoy financial independence. These are great goals that a trader should have, but as you undoubtedly well know, not many traders actually achieve them.
Members of each profession try to achieve long-term goals. But again, you will notice that those who succeed in achieving their long-term goals are in the minority if you look around.
How can you achieve your long-term forex trading goals? Rather than just discussing how great goals are, today’s session will help you achieve your trading goals by providing you with a strategy for doing so. We all agree that setting lofty goals and working towards them is a good idea, but most people tend to get lost or busy along the way.
The main reason why the majority of people don’t succeed in reaching their long-term goals is that they don’t create an action plan to do so. Let’s now discuss how to achieve your long-term forex trading goals.
Do you intend to work as a trader from home full-time?
Do you wish to travel the world, conduct business, and live anywhere you please?
Do you just wish to increase your monthly take-home pay from work?
Do you wish to work for a prop company or perhaps try to manage other people’s money?
First, you need to be certain of your final trading goal. In your trading strategy or on a sizable dry erase board in your trading workplace, note it down. Just make sure you have defined it precisely and are clear about what it is. Let’s now go into the specifics of how to accomplish your long-term trading objective.
Step 2 : Slice up your trading objective
The key to reaching objectives in any field is this: Set the objective up in phases.
Yes, you must break down your long-term objective into “bite-sized” tasks that you can reasonably do in approximately a month. I want you to think of your overall trading goal as a series of monthly mini-goals. By checking off your mini-goals as “accomplished” at the end of each month, you will encourage your natural optimism and increase your confidence in your potential to eventually accomplish your main trading goal.
Most traders put little to no effort into really figuring out how to make it happen in a practical manner because they are so focused on their long-term objective of becoming a professional trader or expanding their trading account as quickly as possible. Most traders start out all fired up, but soon lose focus, lose their patience, and generally operate in the incorrect ways to attain their objectives (overtrading, taking on too much risk, overthinking, etc.).
Aiming to become a professional trader right away is a fantastic long-term objective, but don’t make it your main emphasis right now. Instead, figure out how to accomplish your trading goal step-by-step. Concentrate initially on the actions you must take to become a professional trader; if you complete those steps successfully, you will eventually realise your goal. Make short-term goals out of each of these phases that you will work toward completing each month. Building a skyscraper takes more than a month. The large building is constructed floor by floor, one layer at a time, until it is complete. This analogy is appropriate for how you ought to approach your Forex trading objective.
I’ve discovered that just breaking a large objective into smaller steps or pieces is the easiest approach to achieve it. Then, until it is completed, you concentrate on each stage as a short-term objective. All of your short-term objectives will eventually come together, and you will methodically “construct” the long-term objective.
You should therefore start with your overall trading goal and then break it down into manageable pieces or mini-goals that you can actually accomplish in a reasonably short period of time.
Your confidence will increase when you achieve your reasonable mini goals, which will then be reflected in your overall profits and bring you closer to your ultimate trading goal, whatever it may be.
Here are some examples of mini-goals for one month that may differ from your goals:
• The goal is to have no more than six deals each month, max. This mini target will prevent you from overtrading, which is one of the main causes of long-term losses for most traders.
•Risk the same amount of money on each trade; you can increase your risk as your account grows, say after about six months.
• Never put more money at risk than you can afford to lose on a single deal.
• On each trade, aim for a risk-to-reward ratio of 1:2 or higher.
• Only use price action trading setups that adhere to your trading plan’s rules.
• Keep a running tally of all your trades in your trading journal.
• Make daily affirmations to help you trade better.
Step 3: Reach your trading objective.
Trading is different from other occupations in that failing to take the appropriate actions to reach your long-term goal is likely to result in your own financial and likely emotional harm, as well as the harm to those around you. Therefore, you would be better off not trading at all if you aren’t willing to chipping away at your trading goal in the manner I’ve just explained.
You must exercise frequently and follow a healthy diet if you want to get fit, burn fat, or gain muscle. You won’t come close to achieving your goal of being healthier and looking better. As a result, taking small actions will help you achieve your goals. It’s not really helpful to just think about being a professional trader, wanting to be one, or telling your friends you’re going to be one. If you break the task down into manageable parts that you can do in a period of time that doesn’t bore or distract you, you can and will succeed in achieving your goal.