Get the chance and create your trading plan for 2020. It is the time of the year to think about what you did wrong in order to fix it.
As Oprah Winfrey said “Cheers to a new year and another chance for us to get it right.” Traders can examine in depth which trading decisions were not so good and review their current trading strategy.
As Hal Borland, American author, journalist and naturalist, said: “Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us.”
So, design your trading strategy taking into consideration your experience until now and your wider plan for the New Year. It is important every year to consider some basic disciplines for trading the Forex Market either you are a freshman or an experienced trader.
How challenging can be to set Forex trading goals as part of your trading strategy? Actually, should you set trading goals or is it a waste of time?
Targeting forms an integral part of everyday life, either has to do with micro or macro goals. Every day we make decisions based on goals we have already set, whether by design or unconsciously. Setting trading goals and achieving them are among the most useful Forex trading concepts. Find out below how to set SMART goals to enhance your trading life.
What is a SMART goal?
SMART stands for Specific, Measurable, Attainable, Relevant and Time-bound.
Your goals must be specific, clear-cut and definitive. What do you want to accomplish? You have to clarify a “vague” goal. Instead of saying “be more disciplined” say “I will keep total account exposure at 10% at any given time”.
It is important to track your progress, that is why your goal should be measurable. There must be specific criteria, i.e. “measures”, to evaluate and revaluate the aspects of targeting. Measuring and setting milestones can be pretty rewarding and motivating.
What is a goal if you cannot achieve it? Why to get disappointed by setting unattainable goals and give up by the end of the journey? Your targets may be challenging but yet attainable.
A relevant goal must be reasonable, realistic and based on results. You should focus on something that makes sense with your broader goals. Why are the results important? Results help you evaluate and revaluate the process.
Finding the proper time frame for the accomplishment of the goal is crucial. A bad timing means that chances are you are not going to succeed. Ask specific questions about the time-bound and what can be accomplished within that time period.
Turning Forex trading goals into a trading plan for 2020
Your forex trading plan must be based on what you can control. Take your decisions on what has happened, not on what you think or want to happen. Better focus on your goals and not on the results. For instance, do not set monetary goals, although we mentioned that your goals should be specific. You’d better set a profit goal keeping in mind that you have to be realistic about your expectations for the returns.
In any case, your plan should be yours and cannot reflect the ideal trading plan of another person. You are the only one who has the full info and can consider the perfect goals that fit your needs, your wishes and your potential.
Another important factor to succeed is to stick to your trading plan and revaluate from time to time based on the interim results of your trading plan. Identifying and correcting your mistakes will help you to trade in a more consistent way.
Small tips to plan your trading strategy for 2020
- Set goals, do not make resolutions. Your trading strategy goals must be both achievable and measurable. They must also be realistic. Your goals should be based on your performance, your available time for trading and the funds you want to invest.
- Forex Trading needs experience and commitment. It’s not a way for making quick money. Forex trading is more like a business and it can be a serious one. It has its ups and downs. You make and lose money while you improve your skills.
- Only trade money you can afford to lose. Take out the fear of losing money you cannot afford so you can focus on your trading skills.
- One useful tool which can help you to avoid the same trading mistake is to keep a trading journal.
- Do not hesitate to ask for an expert’s opinion or that of a more experienced trader.
- Before you explore your trading strategy for 2020, examine thoroughly your old ones to avoid mistakes and find out patterns.
- Focus on the process, not only to the profits. Don’t be greedy and do not let your profits take the decisions for you.
- Last but not least, actually the most important, choose the most Loyal, Quality and Devoted broker you can find in the industry: Trade with LQDFX.
And do not forget: New Year, New Goals, New trading opportunities!
PLEASE NOTE The information above is not investment advice.