You need a certain level of motivation and skill in any field to succeed and trading is no exception. Today we will be looking at how trading targets, both psychologically and practically, help you achieve material success. When going through this, we will touch on how to best set targets, how to meet them effectively and what examples enable you to become a financially successful investor.

So, we’ll begin by pointing out how trading is one of the most lucrative approaches to earning profit. Yes, you do little physically, but that is compensated for by mental effort and the psychological aspects of trading. These factors set trading apart a field of its own. However, for beginners just entering the market with dreams of achieving astounding material results, but lacking the knowledge to set concrete targets correctly and identify starting points for their work. The majority of your strength and resources are spent on this front, and the achievement of your concrete target only gets further and further out of reach. The vast majority of new traders prone to positive thinking, which too often leads to actively pursuing targets. As an easy example, everyone wants to be a professional trader earning a sizable income as stable as possible, but at the same time, we don’t want to expand the most valuable resources, time and money, to achieve these goals. Once you understand that, you’ll know that the right attitude is just as important as the moves you make as an investor on the market. And, of course, the fundamental approach to trading on the market should be to set specific end targets and identify starting points for working on the market.

Learn how to set trading targets correctly. Why do you need them and why are they important?


Why do 90% of traders burn out?

It’s not any secret that only a few achieve these high trading results, and the vast majority lose all their funds and crawl out of the market. The reason for this can be found in psychology, specifically, in the role positive thinking plays. This form of social behavior can literally be observed everywhere around you. So, every positive person strives to have the most status symbols, everything ranging from having a more luxurious house or car down to having a general feeling of happiness and wellbeing. However, at the same time, these goals are viewed as a dream more than anything else and they take no real step to achieve them. To put it simply, the vast majority of society just sits on their couch daydreaming of yachts and wealth, not to lifting a finger to try to achieve it.

Apply this to trading, you could say that 90% of investors on the financial market act with this psychological mentality. To resolve the situation, you need to learn how to set targets correctly and develop a pattern of psychological behavior for the market. These will become your most important starting points for achieving success. Base your behavior professionally on the market on taking the right tone in all the technical moves you make and abstractly and objectively evaluating surrounding events. Of course, these lofty matters are difficult for a layman to fully digest, so we will give a practical example.

All traders active on the market give various different tools for technical analysis leading roles. In applying these strategies, approaches, and practices, we can more effectively set lucrative market levels where we can close profitable contracts. However, when only evaluating technical indicators, we miss the psychological inner-workings of the market. Here, the algorithms of large-scale investors come into play, as the sheer volume of their investments can influence the market. At first glance, the overall strategy and clearly defined plans of large-scale investors can seem the most lucrative, but in the end, it is a losing contact and all funds are lost. What happened? Once you’ve gone through an objective evaluation of the external factors, you’ll see that GURUs can make mistakes and set the wrong overall tone for the market as well! If you follow the crowd, abandoning all attempts at setting your own aims and goals, you’ll never achieve meaningful results. Therefore, in order to become a professional trader, you must learn how to work in a team, get access to technical analysis tools of the highest quality, correctly assess external factors and always follow your own chosen path. This is the only way you won’t fall into the 90% of traders, who lose their funds continuously.

Moving away from the psychological aspects and bringing this topic to a close, we can give one last example. Say you’ve built a beautiful boat from the best materials, using the latest technology, but try to make it go against the tide, in the end, even though you have an amazing boat (in trading, a tool for analysis), it will go in the wrong direction. So, either you stay still or sooner or later your ship will collapse under the weight of a wave. Apply this to trading and you could say that even if you are using an amazing strategy if you start off in the wrong direction, you won’t be successful. A concrete target and direction are more important in trading than the analysis tool you use.

What do you need to know when setting your targets?

These days technology for analysis has become so developed that it occasionally gets in the way psychologically of users. By this, we mean that we are bombarded with choice, in terms of information. Everyone is likely familiar with the feeling of when you are standing at the base of a massive bookcase, trying to choose which book to read. In most cases, people chose people either choose something completely uninspiring or decide to read nothing at all. This practical example illustrates the current situation for beginners, in terms of their trade education and learning the psychological aspects of working on the financial market, very well.

The internet today provides a vast amount of material on how to set targets on the financial market, therefore, in order to avoid falling prey to mental traps and running in circles, it is vital to adequately assess the quality and practical value of the educational material. The first thing you should pay attention to as a potential successful trader is the first stage of working out and setting trading targets. These aspects can be seen as a complete list of recommendations on how to correctly set targets:

● Set for yourself a concrete target, regardless of how difficult this may be, you need to keep a positive attitude. In no case whatsoever should you consider the possibility of failing to reach your targets, phrases such as “it won’t work out” and “I can’t” are completely off limits for traders who strive to succeed. The process of achieving targets and the difficulties that investors face along the way are secondary aspects that will be resolved with the strategy of “one problem at a time”. However, the target itself should be set only when you are in a good mood, to speed up the process as much as possible and give your start a boost. The most savvy among us feel empowered when they achieve difficult targets. Without a doubt, set a target!

● The set target should be crystal clear! As you progress toward your goal, you will be faced with many different factors that may influence you to change your target or its specifically-selected indicators. Therefore, the more refined and concrete your target is, the easier it will be to reach it. You’re required to set out your priorities clearly in terms of the specific result you desire to achieve through your actions, identify a path to reach it and based on this outline a plan that you must strictly adhere to. Therefore, you will identify your trading moves in advance, free from outside influence. To put it simply, by mapping out your moves correctly, you protect yourself from mistakes and the corresponding financial and psychological losses.

● Rid your vocabulary of “without” and “no”. In this case, this issue is not only related to human psychology but biology. There is the conscious mind, where we are fully in control of the decision-making process in our daily lives, and then there is the subconscious, which is out with the control of the individual. The conscious mind clearly understands that these words can have several contradictory meanings, therefore, changes the plan of action in every concrete situation they are used. The subconscious, on the contrary, perceives everything in the most literal sense, “no” in this case is taken as a prohibition. Therefore, in order make your targets reality, don’t use these words when describing your end result.
So you can get a better understanding, will give another practical example. The vast majority of webinars, books on trading and forums for analysis present beginners with one aim to start, and that is to gain the skills so as to “not hemorrhage money”. It is a completely logical goal, but it is important to pay attention to the wording “NOT hemorrhage”. In this format, the subconscious takes it literally and in reality, everything goes to the contrary. Your conscious mind will constantly be in conflict with your subconscious, making it impossible to achieve your desired results. Therefore, having the right attitude when setting targets for the formation of end result indicators is a very important aspect of trading.


How do you set targets correctly?

Now we have come to our main topic on all the aspects and practical approaches for setting trading targets correctly so as to achieve financial success. These recommendations will outline as clear as possible the process of setting targets and the path to realizing them. So, in order to trade correctly on the market, get stable results and quickly earn returns, you should set targets in this format:

● Identify the opportunities and put together a realistic goal. However, don’t set the bar too low or, from a psychological and growth perspective, you will quickly lose interest and become bored, and you will switch to relying on optimism. Don’t set unrealistic targets, so as to not set the groundwork for inevitable disappointment and depression

● Clearly set your targets with a positive outlook, using specific formulas

● Outline the intermediate steps to reaching your target. By dividing your target out into small steps, you will lessen the burden of the practical work when achieving the required indicators. Besides that, at every step, you can more effectively evaluate complex points and mistakes along the path of reaching your target, allowing you to correct the pattern of your own behavior, psychologically or otherwise.

● Outline the timeframe for reaching your target. This helps you retain the tone of the work and prevents your conscious mind from falling into hopeful thinking and inaction.

● Select a range of technical means and tools for reaching your financial target. There are professional methods to market analysis and effective approaches to forecasting the rate movement of financial assets.

● Make a list of rules to guide your behavior and follow them strictly on the way to reaching your target.

● Visualize when setting targets. When you imagine concrete goods or material values, not just a number on your screen, you stimulate your subconscious to the right mentality to achieve your target.

Using this set of rules and recommendations, you can correctly set targets on the financial market and gain the opportunity to use the available technical resources for profit effectively.

Conclusions

Put aside the complex psychological points and follow simple, logical steps when trading on the financial market. It is plainly obvious that, for investors, the most important aspect in trading is to set targets correctly. Only with a clear understanding of the end result, with a plan to reach it using specific tools and having the right mentality will can a trader achieve the financial success they dream of.

TRY CRYPTO TRADING

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Learn how to set trading targets correctly. Why do you need them and why are they important?
5 (100%) 1 vote

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This