Have you thought about this question? What is what we traders have to do, what is what best describes our job? Understanding the answer to this question will help you achieve your trading goals a Forex trader.
So, before you continue reading this article, I want you to think for a few minutes about this, what is what you think is our job as traders? Or better yet, what do you think is our main goal as traders?
Told you a few minutes... not a few seconds :)
Might seem simple at first sight right? But it isn’t... it wasn’t for me anyway, I spent years trying to figure this out, trying to think what is what best describes our job as traders. Here are a few of “objectives” I thought on my early days as a trader:
To make X amount of pips each month - Nope, this isn’t our main objective. This one comes as a result of achieving or main goal.
To manage our risk - Well... you have to manage your risk if you want to survive on the trading arena.
To use capital management on each trade - Again, we have to... this is what will keep us alive and trading in case we run into drawdown, and it also helps us have a geometric growth on our capital through a winning streak... It’s important, but is far from our main objective.
To have a streak of at least 20 positive trades - Nope... we are never in control over the market, we don’t know what is going to happen next. If I was able to know ahead of time that my next trade was going to hit my take profit order (you see, just my next trade, imagine if I knew what is going to happen on the next 20) I’d risk my whole account on it... but it is just impossible.
To make X% of return per month - As the first one, it comes as a result of achieving our main goal.
To be psychologically ready to trade - Ahhh, this one is important, we need to understand our emotions in order to trade successfully, but again, if you are able to achieve your main goal, you will not have problems with this one.
So, none of these “objectives” accurately describes our job as traders or our main objective, I think it’s much simpler than that.
So, before you continue reading this article, I want you to think for a few minutes about this, what is what you think is our job as traders? Or better yet, what do you think is our main goal as traders?
Told you a few minutes... not a few seconds :)
Might seem simple at first sight right? But it isn’t... it wasn’t for me anyway, I spent years trying to figure this out, trying to think what is what best describes our job as traders. Here are a few of “objectives” I thought on my early days as a trader:
To make X amount of pips each month - Nope, this isn’t our main objective. This one comes as a result of achieving or main goal.
To manage our risk - Well... you have to manage your risk if you want to survive on the trading arena.
To use capital management on each trade - Again, we have to... this is what will keep us alive and trading in case we run into drawdown, and it also helps us have a geometric growth on our capital through a winning streak... It’s important, but is far from our main objective.
To have a streak of at least 20 positive trades - Nope... we are never in control over the market, we don’t know what is going to happen next. If I was able to know ahead of time that my next trade was going to hit my take profit order (you see, just my next trade, imagine if I knew what is going to happen on the next 20) I’d risk my whole account on it... but it is just impossible.
To make X% of return per month - As the first one, it comes as a result of achieving our main goal.
To be psychologically ready to trade - Ahhh, this one is important, we need to understand our emotions in order to trade successfully, but again, if you are able to achieve your main goal, you will not have problems with this one.
So, none of these “objectives” accurately describes our job as traders or our main objective, I think it’s much simpler than that.
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