The number one targeting mistake traders do is set goals related to money. Active merchants will often tell me they have the goal of making X-dollars a day or X-Points a day. It's just not a good way to build a goal.
Business Objectives in Money
What happens when the market operates in very narrow areas? Usually the price movement will be within the first hour throughout the day. That range could only be 5 or 6 points – too narrow to offer a lot of business opportunities. It is very difficult to earn money on such a day.
So, if you're going to make X dollars a day, how do you do it on a tight day? Since it's almost impossible to make a good business on that day, you would not have achieved your goal. And if you could not read that the market has slowed down and attempted to achieve your monetary goal, you would probably have been trying to trade every little turn and complete business in broken areas. At best, the monetary goal has prevented you from failing because you can not achieve it. Worse, your monetary target caused you to force business in a crisp market and maybe you lost money. Objectives that promote failure, poor business habits and losses are not useful goals.
Better Trading Goal
A better goal focuses on your development as a trader. It will help you improve your business knowledge, skills or talent. Rather than thinking of money, think about the business process. The business process simply refers to the savvy actions that a customer takes on business effectively. A useful question to ask is:
Which business process, if I were to improve and develop in this area, would improve my ability as a trader?
Example of better business goals
Example will help show how to do this. Say you want to improve your business development capabilities. You have been self-assessing your business in the next few days, and feel the most limitation that you have a tendency to counter trade in the development. A simple solution might be to notice if the market is moving momentum and makes higher landings and higher heights (for bullish development). A useful career goal will be:
Before trading is taken to reduce migration, I will evaluate if the market is moving momentum and makes higher heights and higher low. If that's a policy, I will not receive a deal. I will perform this process in at least 85% of all transactions considered in the next 20 business days.
Note that this goal is useful because it is based on skills and ability to assess market activity. It also keeps the buyer from taking poor quality of business. The next step for this trader would be to develop goals to execute business in accordance with policy – again, process goals.
Business goals should be designed to help you achieve. Goals related to money, levels or other countries & # 39; will not help you do it. Manage business-related goals by helping you develop your business skills.