What I want - just to push you in the right direction. Show you the alternatives. And I hope for someone it will be the starting point of the proper trading. I will be grateful if you support my tutorials by your LIKEs and comments. It will keep my motivation to share my personal experience here.
In my previous post, we talked about goals in trading in the format "Profitable Trading Vs Proper Trading". Get more details in the related ideas. Today, let's talk about goals in trading from another point of view.
What is the main goal in trading? What is the 2nd goal in trading? What is the 3rd goal in trading?
If I ask you these questions, what will you answer?
If you are a novice trader, probably you will tell me that the main goal in trading is to make profit. As for other goals, there will be many different variants.
It is logically, and of course, all traders want to use financial markets for making money.
But don’t you think that this goal and more than 90% of losers can be related in trading?
When you focus only on getting money, you forget or you don't have time to think about other, much more important things. How to protect your capital? How to manage your capital properly? How to trade? How to control emotions?
Your main goal is - to make money, a lot of money. You want to become rich as soon as possible. You think only about how to reach this main goal. Become rich very quickly and without efforts. Such an approach can be a reason why many traders lose their money.
From my experience, and believe I have a lot of examples, when a novice trader thinks only about profit, he or she is not far from blowing up the capital. As a result, we have more than 90% of failed traders.
In order to avoid this situation, I suggest you to change the typical way of thinking.
Stop focusing on profit. Start thinking about - how to protect your capital in every single trade. Focus on protecting your capital in the long run. What if you face with 10 wrong trades? What if you face with 20 or maybe 30 wrong trades in a raw? How will you protect your capital?
Only after understanding how to do it and after becoming an expert in this field - you will have a chance to succeed.
Trading is risky. There are no 100% reliable signals. It means that every trade you open can destroy your capital. That’s why risk and money management are so important in profitable trading.
When you start using the right risk and money management strategies, the next step can be like - you need to think about profit. You need to focus on making small but stable profit. How to make 1USD, may be every day or every week? It does not matter. The main goal is to be in profit in the long run. With the right money management and with profitable trading, you will be able to increase the size of profit in the future. But for this period the size is not important. Yes, even 1USD every week, in the long run, must be much better for you than 100 000USD as one-time successful trade.
After becoming profitable in the long run, you should think about how to get extra profit. Only after passing the previous steps you can search for very profitable trades, work with increased risk, interesting market conditions just in order to get more than your average profit. Such an approach will help you to manage your money not only properly but also effectively.
But when you focus on super-profits from the beginning, you miss all the important steps and elements which must be in your trading. As a result, you do the best for becoming one of failed traders.
My list of goals which I would like to recommend:
The 1st Goal - Protect Your Capital
The 2nd Goal - Make Small but Stable Profit
The 3rd Goal - Think about Extra Profit
Trading will be profitable for you with this approach. But you can test another one!