The importance of setting trading goals

I hope you already understand the importance of having goals in life. So I won’t start quoting Tony Robbins for you, but I will mention some specifics that help you set realistic goals to help your trading.

Listen to me! I’m sweaty! 

Ok. Seriously now.

• Keep a trading journal
  Every time you open and close a position, you must make an entry in your journal. Note down the criteria used to enter and exit the trade as well as any observations made along the way.When you write it down, not only are you creating an invaluable resource for you to measure and track your progress, but you’re training your brain to think mechanically, which is the most important part of trading.

• Never set a growth goal!
  I often see new traders targeting a set number of pips per day, or a certain percentage return per month, however, You can’t take more than the market will give you.Sometimes the best trading decision you make is waiting. Setting yourself a defined growth goal will force you to trade in unfavourable conditions.

• You are in total control of your success
  This leads on from the previous point – You can’t control the market. However, you can control how you react to it. If you trade the strategy correctly and record each decision, then you’ve succeeded. No strategy will make money all the time; it’s simply the nature of the markets and why I don’t suggest you tie your goals to your short term performance. However, if you stay true to a winning strategy and don’t make emotional decisions, the profits will come.

Before you start anything, you need to understand the intended destination and have a clear path in your mind on how to get there. Things happen, your plan will change and that’s ok. But you need that initial road map if you stand any chance of succeeding.

To quote one of my most loathed cliches “If you fail to plan, you plan to fail”.

I’ve done quite a few educational sessions inside our trading room on how to set goals and a trading plan. Make sure you’re a member to get the full schedule of what is being taught in the weeks ahead.