Set Realistic Trading Goals
There is a lot of distractions for the newbie forex trader to deal with. Not the least of which is the countless number of people giving bad advice when it comes to what works and what doesn’t in the realm of financial speculation. You know what I mean. How many times have you seen a claim about a forex strategy or system that supposedly makes $ 100 or $ 200 or even $ 1000 a day in the markets on autopilot while you are sleeping or relaxing at the beach or golf course. It’s down right ridiculous if you really step back and think about it. But I guess these snake oil type salesman have enough willing buyers that is just keeps on coming.
I am here to tell you, that yes, there is money to be made in the forex market, and quite alot of it, if you do it right and control your risk. But it’s not what you think. Most professional traders aren’t looking to make 100% or 200% returns a year. Can it be done? Absolutely, but there is a catch. Are you willing to drawdown 40% or 50% or even 75% of your account to reach that end? Before you answer, I will answer it for you. No you are not prepared to assume that type of drawdown. And so, the point is absolute returns are meaningless without first considering the risk part of the equation. Set realistic trading goals for yourself, otherwise, you are simply setting yourself up for failure.