Is this kind of goal setting common as a forex day trader? And if so, are there any sources that I can learn about the process of achieving these goals?
Short term goal
15%~profit/month ~4h/day of trading
Long term goal
Earn $1,000 ~ $3,000/month from stock dividents, yield, etc.
To achieve my short term goal, I’m planning to do day trading.
And to achieve my long term goal, I want to accumulate enough money from day trading.(So I can make a decent amount of money from relatively low-risk investments.)
That short-term goal from forex seems really high? At least for me as a newbie. But maybe if we have super pro traders, maybe they normally make that but all I know is that seems impossibly high. Also day trading is a very stressful venture, I thought I could make money that way too but I didn’t and it wasn’t worth the stress it was causing me. Just my two pips!
Your only goal should be to execute your approach perfectly each time.
Forget monetary goals - they’ll force you to to over trade or over size positions
Few business are like trading - we have zero control of how much money we can pull out of the market - we take what it gives us no more no less.
In other businesses you can work harder, smarter or be more forceful - trading in contrast is passive we can’t control what happens besides your money management and yourself
Thanks for the replay.
Yes, I think 15%~/month is pretty high. But with well thought out strategies and leverage, that amount of return might not be an impossible task.
I’ll continue my research thanks
Savings account, indices, etc
I think we have a lot of options to choose when it comes to low risks investments. They are low risk but low return, so you need to have a lot of money to invest to get a decent amount of income.
I think executing the approach perfectly each time is a must.
(I understand knowing it and doing is different, but let’s assume that we can trade according to the plan)
As you pointed out, focusing on executing is important, but I think having a long term goal and planning backwards from that goal is also crucial. (If you don’t plan backwards, you don’t know which direction you are heading)
I would love to hear your thoughts on setting long term goals.
I’ll continue my research on long term goal settings. Thanks.
The real challenge is whether you’ve got a strategy which is proven to work & you’ve learnt to stick with it always, i mean, you enter ONLY if all the conditions are met, you’ll set the SL according to the system, & place the TP always. If this is the case, then my question is why you are putting such limits. If it is a mechanical system as described above, even if you managed to pull a 15% , you can still trade if the conditions are met, you can extend the duration to maybe 10 hrs, if you see the oppurtunities coming,you can trade without any stress IMO.
Its a nice ambition to have a long-term goal - ambitions are a great incentive to action.
But you can only achieve your goal when you have a consistent strategy. This will dictate your win rate, your percentage capital risk per trade, the average risk:reward ratio, and the number of trades you can find per day. If you don’t have a strategy that tells you these things, you’re not ready to take off yet.
True! The first and the most important step, rather, I would say.
Having a goal is mandatory before you step into the market. If you trade aimlessly, there would hardly be any motivation.
Also day trading is a very stressful venture, I thought I could make money that way too but I didn’t and it wasn’t worth the stress it was causing me. Just my two pips!
thanks