Being realistic for many people is hard. When in fact, if you set your goals realistically or not too high to achieve comfortably, you are more likely to end up trade better than others.

Being realistic for many people is hard. In real life or even in trading Forex, so many people set ‘unrealistic’ goals for themselves. First, you need to know what you want. Analyze it; is it realistic enough for you to believe it could happen? Or is it realistic enough for you to achieve that goal in a certain amount of time?

When it comes to setting a goal in trading Forex, you need to think of it on a realistic level. Many people think they can quit their day job and then start trading Forex with little capital. They heard from other people that Forex can lead you to riches, you can make big money in a short time. Well yes, it is possible for you to do it, but as you know, 90% of all traders in the world are losing their money. If you set your goals realistically or not too high to achieve comfortably, you are more likely to end up trade better than others.

setting
By setting a realistic goal, you can avoid getting big disappointment. If you set your goal so high that it’s so unrealistic for you, you are likely to keep getting disappointed and end up losing all of your money. Everybody has dreams to make millions of dollars in Forex trading, but they often think that to make a million dollars, they need more than a million dollars as starting capital. The truth is the trader who has the big capital may not be the better trader, it just gives more flexibility to trade, the ability to risk less per trade and greater staying power. The longer you can stay in this game, the bigger chance to success you have.

At first when I started trading Forex, I had a goal to make at least $20 a day. The first week was so good; I could make more than $100. And then there were losses in a row. I started to overtrade, I made more losses. Finally I ended up losing all of my money. The problem was so simple. It was not a realistic goal for me. My starting capital was $100! But my goal was $20 a day, the percentage in terms of starting capital was too high and flexibility low. I was so disappointed and finally I changed how I trade and set a realistic goal.

 

Making Real Goals

If you want to make a goal in Forex trading, first of all, make one that is reasonable. Instead of making an extreme goal, try to make it easy and obtainable. Let’s see, if you have $1000 in your account and your goal is $100 a day, is it reasonable? $100 is 10% of $1000. If you want to make at least 10% of your capital, you have to risk it too. Risking 10% of your account is NOT a good idea. Trust me.

setting
Let’s see my trading goal. As a day trader, I have a goal to make at least 12% of my capital in a month. Everytime I trade, I risk 3% of my capital. To achieve my goal 12% a month, at least I have to get 4 winning trades in a month. That is not difficult to do. It is reasonable and it is obtainable. I am so comfortable with that and it’s showing in my performance too.

Every trader is different. One trader’s goal will be different to another trader’s goal. It all depends on your characteristics of trading. Knowing how you trade, your strong points and weaknesses means you can know if the goal you want to achieve is reasonable for you. Try to aim small first, if you can do it, you can increase it over time.
Be a trader who can survive in the game.
Hope this help!

Rico FY - Forex Day Trader