Trading targets
The first thing I would like to talk about is setting desired goals.
This principle works everywhere and is based on the basic principles of psychology. The human body has a very interesting reward system for achieving goals. This mechanism forces the body to release special hormones every time the brain registers the achievement of the desired result. Remember how pleasant it is to feel euphoric after solving a problem, or completing a task that took your attention. Now imagine the emotional impact of achieving trading results, given the fact that it requires a lot of attention, is directly related to your financial situation and symbolizes success.
Your trading discipline will receive new impulse when setting goals. The trading plan will become an integral part of your trading style and, in my opinion, will lead to improved stability.
My advice is not to set unattainable goals. Even if you have no profit for 3 months in a row and have a drawdown of 30%, it does not mean that you need to set a goal for the next month with 100% profitability. This is an impossible task that will only lead to a worsening of the psychological state. If you are experiencing a drawdown, then first of all you should work on your trading history and try to set a truly achievable goal. For example, in the next 2 months, do not lose money. Yes, this is a long time and after this goal fulfilment, you will be left without a profit, but believe me, your mind will thanks and reward you with better concentration and inspiration for further goals.
Don’t try to copy other’s goals. Your trading strategy and your trading plan are individual. Consider only your trading history and analyse your trading results in order to correctly set your individual desired mark.
Do not get greedy, it will ruin the idea of target trading and make you wrong. Give the market an opportunity to take a break from you, give the brain an opportunity to accept and rejoice in victory.
