Are you setting new trading goals for the start of a new trading quarter after a long holiday? Taking time to review your trading goals during a long weekend is excellent, but there are several important points you should keep in mind.
New Doesn’t Always Mean Better
Unlike many franchise reboots, I don’t believe that “new is always better.” Before trying a new strategy, review your old one and see if simple changes in stop loss adjustments, position sizing, or indicator settings could have altered your trading outcomes. Also, check in your trading journal whether you have been consistent in executing your strategy. Even the best strategy can’t generate profits without proper execution.
Have Realistic Expectations
Just because you had a trade with a 200:1 reward-to-risk ratio that was successful, it doesn’t mean you should aim to increase your account by 1000% for the rest of the year. Set your goals and expectations based on average performance, the time you can dedicate to trading, and capital limitations.
Winning Can Be Just as Dangerous to Your Account as Losing
Did you know that continuous losses can make you fearful of trading? Interestingly, continuous wins can lead to overconfidence, potentially inflicting psychological damage. This can lead to underpreparedness and overtrading, which can be worse than being overly fearful because you might be taking unnecessary risks.
Focus on the Process, Not the Profit
All the points mentioned above boil down to one thing: Forex trading is a marathon, not a sprint. Like any worthwhile endeavor, consistently generating profits requires consistent practice and self-improvement. Thinking you need anything else is a mistake.
Don’t be swayed by one-time profits or losses.
Keep your goals in sight and continue to focus on doing the right things, in the right way, at the right time.
