By the end of every year people are making resolutions of all kinds. Let us admit that the majority of these resolutions are not practical since an actual planning has never been involved. Let us then talk about resolutions and goals. This is what forex is about, right? It is about setting goals and actually achieving them. Let us first give a definition of setting a goal.
Setting a goal is a design of a focused plan based on proven methods to achieve desired results.
No, we are not talking about your particular trading plan for today. We are talking about your Big Plan and about what you are going to become. We are talking here about beginners of forex who intend to become professional traders. Many of them even do not admit it and say that they are trading for fun. However, many beginners eventually realize that forex is about skills, determination and professionalism.
However, they also realize that the trading job is one of the most unstructured endeavors we can partake in. This is why it requires rules, plans and regulations to allow the beginner to survive the volatile forex world.
Something we all need to flourish is motivation. The best kind of motivation comes from setting goals otherwise we are just aimlessly drifting through life with no actual purpose. Much like a sailboat at sea with a broken mast, not sinking, but not able to navigate its way back to a safe port either.
Here we quote a beautiful song of Deep Purple written in 70s:
“You feel there's no tomorrow
As you look into the water below.
It's only your reflection
And you still ain't got no place to go"
Let us now memorize this point : “no goal and no tomorrow”. This is very true! Although people talk about their resolutions all the time: to lose weight, find a new boy/girlfriend, start a company, graduate from college, they don't have a detailed strategy to achieve those resolutions, hence they rarely achieve them.
Today I would like to list a few guidelines for goal setting principles and success.
Select a goal that you actually want to accomplish, for instance, to treat your trading as a business instead of a hobby. In other words you indent to graduate from beginners to professionals during this year. Specify that you must be willing to give your new job, say 80% of your free time. Be honest with yourself: forex trading takes a huge commitment to be successful.
Set specific goals: saying you will master professional trading is too general of a goal. Be more specific such as, "I want to set up my personal trading strategy that fits my personality and available finances." Also, "I want to justify and understand every feature of my forex trading plan."
Generate a compatible set of goals: If you set one of your trading goals to make enough money to put say $50,000 towards your retirement, then don't set another goal to buy a new sport car which contradicts goal #1. The goals must support the other. Perhaps this advice sounds over simplistic, however people set a contradictory goals all the time.
Make each goal challenging: We study and grow in life by facing various challenges. Therefore, in order to learn and grow, you have to set your goals to challenge yourself. Challenging (but achievable) goals are the building blocks of your forex trading career.
List your priorities: Make a list of all of your goals and specify your top priorities. Arrange your bigger priorities by making sure they are in order and fit properly with other goals. In trading, your priorities could be continuing learning, diversification of your earnings to create new revenues, keeping up with the current technology, networking with other forex traders, having your trading plan continuously updated, organizing your private life and your trading career, etc.
List each of your goals: It is a good idea to write down your goals so that you can read them on a daily basis such as your screensaver. After some time they will develop into subconscious thoughts.
Differentiate between long-term and short-term goals: If you set goals that are longer than 6 months, prepare some intermediate shorter-term goals. This allows to see your growth as you enjoy your trip towards the longer-term goals. Imagine that the shorter-time goals are rewards which encourage you to stay afloat and catch the bigger fish.
Establish realistic goals: Don't make unachievable goals. This will only discourage you right from the start. Subconsciously you will always be doubting yourself if your actual objective is unworkable. Set smaller goals and as you achieve them and each succeeding goal, you will be accumulate your progress.
Formulate your objectives using positive statements: Instead of saying "I will not give up after a bad trade," say , "A loss is just a demonstration that forex is a probability business and one trade does not make a trader. My risk management strategy allows me to come back and trade again for my chance to profit."
Visualize your objectives: You should be able to see yourself completing your tasks and being successful. In the forex trading there almost every goal is achievable if you "really" want it. By “really” I mean you are moving towards your goals following your calculated plan and treating forex like business.
You are a forex beginner or an intermediate player. Sooner or later you will start formulating your goals and think about your potential in trading. Your dreams and inspirations will motivate you to work hard and carefully each day. Our goals give us a reason to succeed in our endeavor of trading. So, couple your trading plan with your short term and long term goals and prosper!
Also read Forex Trading Psychology
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