Forex trading is a long-term career path. It’s unlikely to make you a millionaire overnight. In fact, you may lose some before you even begin making consistent returns from the market. Having realistic goals can be the key differentiator between success and failure in the trading business as well as in any personal and professional pursuit in life.
What Are “Realistic” Trading Goals?
It’s definitely not “make $10,000 per day with a $10,000 account”. Even the top traders in the world aim for lower annual investment growth percentages, and they already have the most intelligent employees working under them and the most expensive data feeds money can buy. This is not to discourage you from pursuing high returns on investment, but to instill the correct long-term mindset that forex trading is not a get-rich-quick scheme.
The goals you set will depend on your current capital amount, trading strategy, risk threshold, and future expectations. For example, if you have $100,000 to invest in forex, striving even for a one percent monthly return can produce $1,000 per month, which when compounded can further increase over the next several months. On the other hand, a trader with a $2,500 account will normally look for a more aggressive approach to compensate for the smaller lot sizes. A 10 percent monthly return is indeed possible, but also entails to more risk taken.
Without goals, a trader may go about wandering the markets and trading hastily and blindly until cash eventually runs out. Make sure you set specific and realistic goals before even making your first live trade.