It is not really important what we do in life, and that includes foreign exchange trading, however, whatever we do, one thing that will have a more significant affect on our success than anything else we do will be setting goals.
It is a simple fact that the human mind is at its best when it is given a clear roadmap to follow and, in setting yourself a goal, you start the process of building your roadmap by defining the end point of your journey. But fixing a destination is not enough and you will also have to define the route to follow to get to your destination. Let's look at an example.
Suppose that you make up your mind to build a fortune as a foreign exchange trader, who doesn't after all! This in itself is not however much help as any goal that you set yourself needs to be measurable, otherwise you have no way of knowing whether or not you have reached it. So, at this stage, you have to define precisely what you mean by a 'fortune'.
Let us say therefore that you decide to set yourself a goal of making $1,000,000 in the next year. You now have a clear destination. The next problem is that, as you are probably a newcomer to the world of foreign exchange trading, are still trying to learn the ropes and possibly have only limited capital to invest at this stage, realizing $1,000,000 in the next year is possibly an unrealistic goal.
As well as being measurable, goals also have to be realistic. It does not matter what goal you set yourself in foreign exchange trading, but it has to be within your reach. There is no point in deciding that you intend to win Wimbledon if you have never even picked up a tennis racket.
So, instead of aiming for $1,000,000 let us set a more realistic target of say $120,000. Once we have done this, we then have to split this figure up into marker posts which we can add to our roadmap and this can be achieved by looking at our target on a monthly as opposed to an annual basis. This gives us twelve $10,000 markers. Now, if we continue along these lines we can then break our goal down further into weekly markers of $2,500.
Now we have got something that we can examine against our current and recent experience and it is a quite easy matter to see whether or not this figure is reachable. Is it possible, against the background of your current experience, to make $2,500 trading Forex in the next week?
Goals must be measurable and realistic, but they must also be attainable. It is all very well to set yourself a realistic goal, but you must also have the right tools, in the right place at the right time if you are going to reach that goal. If you are currently making $750 a week then you probably won't turn this into $2,500 overnight so, in this instance, your goal is unattainable and you will have to go back to square one and start all over again.
But, if we assume that $2,500 is attainable, then there is one additional step that you need to take before you are ready to head off on your journey. This final step is to paint a mental picture of your destination.
Although you have set yourself a goal of making $120,000 in the next year, the money by itself is not really what you are aiming for, but it is what you can do with the money that is important. So, having made your $120,000 what do you intend to do with it? If you want to buy yourself a new SUV then paint yourself a picture of driving into the sunset with the roof down and then you really have got a goal.
If you wish to be successful in foreign exchange trading then you have to set yourself a goal that is measurable, realistic and attainable and paint a picture of that goal in your mind's eye. Do this and you will be surprised at how easy a matter it is to get to your destination.
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