Trader's trading target: 14 psychological rules for success
I recently had a conversation with a trader who said that his goal was to increase his trading deposit from 150,000 to 250,000 rubles in about two months. The markets were kind to him, and he reached his goal even a few days earlier than planned. Now he has replenished the deposit, increasing it to 500,000 rubles.
Lack of experience - the main problem of beginners
His new goal is 1,000,000 rubles by the end of this year. Something tells me that this goal is unlikely to be achieved. The fact is that this guy is a newcomer. He got to know the market only a few months ago, and he does not yet have any decent experience.
Of course, quick successes are encouraging and give confidence in one's own strength and abilities. However, the market "loves" such traders. Let's hope that our character is able to at least save his deposit by the end of the year. It will already be an excellent result for him.
The main thing for a trader is a strategy and a goal
But how was he able to almost double his money? He had a strategy: he would choose cheap and volatile banking stocks to work with, buying them on the decline and selling them as soon as the price was up about 30 percent. When the stock began to decline, his strategy was reversed. A kind of "swing. Yeah, that's not a good one. In fact, he has absolutely no good strategy for getting in and out of a trade.
However, what is really great is that a trader has a specific goal: to double his deposit by the end of the year. Tell me honestly, how many trading goals have you set for yourself?
Setting a goal and developing a plan to achieve it can help traders overcome their fears. The aforementioned newcomer is a prime example of this. He will learn from his mistakes. He will analyze his profitable and unprofitable trades in order to understand what went well and what went badly, and how he can improve his trading technique. Over time, he will be able to make significant progress, adapt his technique to his own strategies and trading techniques, and refine his trading signals. He will discover adjustments, techniques and ideas that will help him advance towards his goal. And then, who knows.... Perhaps my prediction for his deposit will turn out to be severely underestimated.
Setting trading goals: 14 basic rules
When we set goals for ourselves, we become more productive. This is a fact. However, simply setting financial and trading goals is not enough. It is necessary to understand how to achieve them. Here are a few ideas that may come in handy.
- Set yourself only a real goal financially.
- Adjust the goal reasonably, both in terms of money and time. You can't double your money in one trade, but you can do it in X trades over Y months.
- Look for flaws in your existing trading strategy. Are you constantly entering and exiting a trade too early or too late, or is it on time?
- Do you set a specific price target for exiting a profitable trade or are you waiting for an abstract change trend (or another signal)? Perhaps for short-term trades, exiting at a specific price (e.g., "if the price reaches 19.95$, sell") works better.
- Plan your trading and follow your trading plan.
- What kind of instruments do you trade? Pick something that you understand and are good at. It does not matter whether it is stocks, precious metals or commodity futures. The main thing is to understand the chosen asset and have a good understanding of it.
- Take a more proactive approach to your trading. Try and experiment with different trading algorithms, strategies and position sizes to maximize profits while controlling risk. Break established barriers and change habits. In other words, get out of your "comfort zones" to help yourself achieve better results.
- Remember and keep your goals in mind. Don't let emotions or habits interfere or otherwise limit the attainment of those goals.
- Mistakes happen all the time. At times like these, when trading starts to take a loss and stress increases, you need to focus on your goals more than ever. Look at each losing position as an opportunity to test yourself and your skills. Use these losses to sharpen your skills and channel your emotional energy into improving your trading strategy.
- Learn to accept risks and dismiss any fears or concerns that might interfere with your trading.
- After looking at your previous deals, ask yourself: what is limiting your ability to make more money?
- Find an experienced partner with whom you can discuss your trading, and remember that it should be a constructive discussion on the case, not a hullabaloo. If you lack trading signals and market entry points, have doubts about how and when to exit a trade, then perhaps an active exchange of skills and experience will be beneficial to both of you. However, you should always be extra cautious about the various forums for beginners, where "blind people work as guides for the blind".
- Work on habits that will help you overcome difficulties. You must learn not to trade when you are upset or the market asks you to stop trading (say, after three losing trades in a row).
- Learn to trade not for the feeling of drive and adrenaline in the blood, which, among other things, trade gives, but methodically and systematically turn trade into a business.
Just as an option: Set a goal to triple your money within three years. That's the goal. After all, who says that it is impossible to do? After all, a beginner could almost double his deposit in two months, which means that absolutely anything can happen! You just have to focus on your goal and your own trading abilities, and this will lead you to the result.
Set a goal and go for it!
Discuss the market with traders:
- Forex Analysis and Commentary vol. 7
- Current situation, discussion and forecasts (EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, NZDUSD)
Clause 10 - Learn to accept risks and dismiss any fears or fears, this is what prevents us all from succeeding in trading and in all our other endeavors.
Vinnitsa81, and the good news is that it really can be learned!
Unfortunately, novice traders either have no time or are too lazy to read the Rules. And lucky in the game - only a few.)
That's why there are so many losers and disappointed.
If a beginner expects easy money and relies only on his luck and fortune, he is unlikely to go into the rules. The game is different from work, because it looks like a lottery, where you lose the money you invested.
Elena Krylova, there is probably no need to even talk about this category of people in relation to trading. They come, they lose, they go quickly. Some of them come for good, others for new money. Here we can analyze the reasons for this behavior, what lies behind it, defining the game as a consequence. But it has nothing to do with trading, in my opinion.
Elena Grishina, they do, and sometimes they even learn them by heart. But the thing is that even having learned the rules of the road by heart, it is impossible to become a driver. It is necessary to learn how to apply these rules. And this is where the problems begin. Everyone knows everything, but stubbornly does the opposite.
What I completely agree with is that there should be a clear trading plan and it should be fully executed. Everything should be included in the trading plan, from money management to the reaction to the fundamental news.
What I completely agree with is that there should be a clear trading plan and it should be fully executed. Everything should be included in the trading plan, from money management to the reaction to the fundamental news.
Alexey, I have been trading forex for the third day 😉 I consider myself very lucky to have dug out your article. Thank you. It explains the essence of forex trading comprehensively and succinctly
Love, I'm very glad if my article was useful to you)) To tell the truth, it is not the easiest market you have chosen, it's hard to start there, so good luck and patience to you! If you have any questions, then feel free to contact me: http://allforeasylife.ru/trejding/ I would be happy to help))