Man is made in such a way that he needs goals. They stimulate him to be active. But do you need goals in trading ? And if yes, what should they be? Let’s try to figure it out. First of all, I want to note that any goal will work if it is formulated as clearly as possible. That is, there should be no general phrases. For example, the “I want to be rich” goal option will not work. “I want to have an annual income of $ 500,000” is a very specific goal. But it is still better that it does not concern the amount of funds, but the methods of obtaining it.
The main goal of the trader
If we talk about trading on the market, then the goals in trading cannot be determined in terms of earned dollars. Moreover, if you set yourself the task of making a profit, for example, $ 1000 per month, then this will only interfere with trading and will most likely lead to the opposite result. The market situation can develop in different ways. The monetary target will create nervousness if losing trades are closed. And in such a state, a trader often begins to make gross mistakes, which, as a result, will further distance him from the goal.
Trading goals should address only one issue – the preservation of your funds. All the attention of the trader should be directed precisely at this. Optimization of a trading strategy, adherence to the rules of risk reduction, analysis of the reasons for unprofitable transactions – all this will allow avoiding large losses, and ultimately the trader will be able to make good money in the market.
How to improve trading results
The desire to preserve their capital in combination with other factors will certainly lead a trader to a stable income in the market. What should you pay attention to? First of all, it is discipline. Without it, successful trading is impossible in principle. All actions of a trader must comply with a specific plan. He must have his own trading daily routine, within which to open trades strictly according to the rules of the applied strategy.
Don’t allow yourself to sit for hours in the trading terminal. Overwork will only worsen your trading results. It doesn’t take much time to analyze the market situation. In addition, some technical analysis tools notify the trader with the help of an appropriate sound about the appearance of a favorable opportunity to enter the market.
Don’t try to open as many trades as possible. A lot does not mean good at all. Focus on the quality of your trading decisions, not the quantity. Set limits for yourself on the size of the drawdown and the volume of trade orders. All of this will only bring you closer to trading success.
Trading goals should only concern the trading process itself. Increasing its efficiency will make it possible to earn stable income.