How to set your goals like a Professional Trader


Do you know the key reason for losing money in the options market? Many people have in-depth knowledge about technical and fundamental analysis, still they fail to make money in the options trading industry. One of the key reasons for facing such failure is improper goals. People who have extensive knowledge often become overconfident and set unrealistic goals. By doing so, they impose great mental pressure and thus they keep on breaking the rules. If you want to avoid such problems, you must learn to set your goals like a professional trader.

Professional Trader
Professional Trader

So, is there any easy way to set goals at trading? Can we become a successful trader? To find your answer, you need to go through this article. Once you read this article, we strongly believe that you will know lovers trade this market like naïve traders.

Size of your trading capital

Before you set your goal, you need to assess the size of your trading capital. If you expect to make a decent living by investing $100 in your trading account, you are just daydreaming. Even if you trade like a pro trader, there is no way you are going to live your life based on such investment. The novice traders usually invest a small amount of money and use the high leverage trading account to earn big money. 

By doing so, they ignore the most basic rules of risk management. Thus they blow up the trading account within a short time. You should be aiming for 8-10% profit per month with a medium-size trading account. And if you invest a big sum of money, you should be aiming for yearly gains and it should not exceed 20% of your account balance.

Depth of knowledge

Everyone loves to say that they know a lot about this market. But when it comes to the real trading profession, they start making silly mistakes. You need to set your goals based on your knowledge. Be honest to yourself and admit the fact that you have a lot to learn. To learn things from the authentic source, you may visit this page. By accessing the free resources at Saxo, you should be able to learn many new things about trading. Most importantly, you will get a clear idea of how this trading industry works. Thus creating a robust trading method is not going to be a tough task.

Assess the condition of the market

Your trading strategy might be designed to find profitable trade signals based on certain market conditions. If that changes, you need to change your goal. For instance, you should not be expecting the same amount of profit while using the trend trading strategy to trade the ranging market. Based on the market condition, you should be bringing slight change to your goal. Once you do that, you will start developing unique sets of skills just like the professional trader. It will help you to make better decisions in the retail trading industry and let you trade the market with strong confidence.

Assess your lifestyle

You should not be setting a goal that is not suited to your lifestyle. For instance, if you invest $50,000 and expect to make $30000 profit per month it would be insane. You need to consider how much money you are currently making from your day job or business. Let’s say, you are earning $5000 per month. So, you should be setting your profit target to $5000 and this will limit your stress during the trading process. Thus you will be taking smart steps in the retail trading industry. Never think you know every bit of detail and you don’t have to worry about your lifestyle. Unless you feel comfortable with your gains, you will never learn to trade the market with discipline. So, consider this factor while taking the trades in the market.

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Andrew Crew