4 Realistic Goals for Beginner Traders
Author: George Davis
Traits of a professional trader
When you start trading for the first time, there are a lot of unanswered questions. This lack of information makes it challenging for beginner traders to become successful. As a result, novice traders set unrealistic goals that are difficult to achieve. During your trading journey, you should make sure to set easily achievable goals. Therefore, setting your goals to making money is not the best approach. Instead, you should focus on exhibiting the traits of a professional trader.
4 Realistic Goals for Amateur Traders
Setting goals are crucial but how to set goals is more important. If you set the wrong trading goals, you won’t be able to achieve them. Here are 4 realistic goals for novice traders.
1. Set Goals About Your Process, Not Result
Beginner traders always make the mistake of setting numerical goals. While developing a defined approach is a good idea, measuring your success in terms of money is not ideal for becoming a successful trader. It’s best to set goals based on a robust trading strategy instead of being money-oriented. This is because plunging into the trading market to achieve substantial amounts of money is an unachievable goal.
2. Always Have a Plan
Having a plan is crucial in stock trading because you never know when things can go in the wrong direction. Your best stock trading goals should include making backup plans if the trade does not go in your favor. Moreover, every trade you plunge into should be backed with calculated strategies and robust planning.
3. Don’t Trade for Dollars
One of the biggest mistakes beginner traders make is that they trade to make money. Some stock options might seem lucrative and show a high profit, but if you buy those stocks without planning, you might jeopardize your chances of making profits. Making money your goal can lead you to buy scam stocks or stock options that show high value but will soon fall. It's always best to observe the market situation and then buy a stock.
4. Keep it Simple
Complex strategies are hard to follow, especially for beginner traders. If you believe making a strategy that involves many variables will benefit you, think again. It's best to keep things simple when trading in the stock market because external factors, such as economic policies and inflation, can quickly turn the tide against you.
5. Journal Every Trade
Keeping a record of your trade will help you understand what happened during a trade in case of a loss. Moreover, journaling your trade will also help you know which trading strategy is working. After you have collected an ample amount of trade data, you can figure which technique is more profitable.
Beginner traders have plenty of unanswered questions, and you will find answers to them with time. As you become more proficient in trading, you will learn different strategies and techniques. You will also understand that making money-oriented goals is never favorable. Instead, you should exhibit the habits of successful traders. Lastly, you should make a goal to journal every day. This will help you understand what caused the negative or positive outcome of a trade.
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