Not knowing your destination means that you will get lost in the wilderness, whether concrete or green. The same concept applies to forex trading where your destination is the goal or goals that you set.
Therefore, if you do not have solid targets set to chase down then getting lost in the wilderness of the FX market is akin to losing your money and becoming a marketer or scammer trying to get money off of beginners.
Thus, it can be said that setting goals is easily one of the most important aspects of forex trading and must be taken very seriously. For this purpose, here is a list of some things that you should take into consideration while trying to define your goals and targets with FX trading.
Part Time vs. Full Time
Your goals have to be achievable. This is why the first thing you should consider while defining them is whether you plan to trade in forex on a full time basis or part time basis.
If you are going to trade on a full time basis then your targets need to reflect the fact that you will be relying on trading for your income. On the other hand, if you are only interested in trading currencies on a part time basis then your targets can be a little more relaxed.
Once you start trying to determine your targets you have to make sure that they are realistic or you would be putting undue levels of pressure on yourself. This is why you have to assess the forex market in such a way that you can find out what you can expect to gain by trading in it. Set realistic targets and you will not find it that difficult to control your emotions in the market.
Tangible & Intangible Targets
When forex beginners are told to set targets, they almost always think of it in terms of how much money they need to get from the market. However, targets can and, in fact, should involve more than just money. Effectively, you should not only have tangible i.e. monetary targets but also intangible targets i.e. things based on improving your skill and talent.
Personal development is also something you should target in forex trading. FX trading can help you improve various aspects of your life. For instance, trading in currencies will teach you how to be patient and recognise both your strengths and weaknesses. Moreover, trading in currencies would also teach you how to be objective in life and weigh the pros and cons of every option before making a decision.
Breaking down Targets
At the end of the day, a set of smaller forex targets would seem much more attainable than a single big one. This is why you should break down your large targets into smaller ones so that you can approach achieving them on a piecemeal basis. You should, ideally, break down your larger targets into daily, weekly, monthly, quarterly, and yearly targets.