How to set Trading Goals

Many traders will randomly set daily or weekly performance targets. Such an approach is very dangerous and you have to stop thinking in terms of daily or weekly returns. Setting yourself daily goals creates a lot of pressure and it usually also creates a “need to trade”. Instead, here are some ideas on how to set trading goals the right way:

• Short-term (daily and weekly): Focus on the best possible trade execution and on how well you follow your rules/plan.
• Mid-term (weekly and monthly): Follow a professional routine, plan your trades in advance, obey your rules, journal your trades, review your trades and make sure that you learn the correct lessons.
• Longer-term (semiannually): Review your trades, focusing on how well you executed your trades to get an understanding of your level of professionalism. Find weaknesses in your trading and adjust accordingly. This will lead to profitable trading inevitably.