WHAT HAPPENS WHEN I REACH MY GOAL?
Once you’ve achieved your goal, you don’t have to stop trading, but you can
take precautions to safeguard your gains. In trading, we use a stop on every
trade to limit losses and protect gains. Why not use that same philosophy
to protect your monthly returns?
For instance, assume that a trader’s goal is a consistent monthly profit
of 5 percent. After reaching this goal, she continues trading, and her gain
for the month climbs to 10 percent. The trader now calculates a “stop” for
the entire account, at the point where the gain was equal to 5 percent. If
the monthly gain falls back from 10 percent to 5 percent, she stops trading
for the month, and has still achieved her monthly goal. She can continue
trading in a demo account for the remainder of the month.
What if you encounter problems and can’t meet your objective? If you
are consistently failing to meet your goals, they may be too aggressive. Try
for an easier target. If things get really tough, cease live trading and switch
to a demo account until you regain your footing. Some traders feel that
demo trading is beneath them, but sometimes you have to sacrifice your
ego if you’re serious about making money as a trader. Don’t allow foolish
pride to stand in the way of your long-term success.
Once you’ve achieved your goal, you don’t have to stop trading, but you can
take precautions to safeguard your gains. In trading, we use a stop on every
trade to limit losses and protect gains. Why not use that same philosophy
to protect your monthly returns?
For instance, assume that a trader’s goal is a consistent monthly profit
of 5 percent. After reaching this goal, she continues trading, and her gain
for the month climbs to 10 percent. The trader now calculates a “stop” for
the entire account, at the point where the gain was equal to 5 percent. If
the monthly gain falls back from 10 percent to 5 percent, she stops trading
for the month, and has still achieved her monthly goal. She can continue
trading in a demo account for the remainder of the month.
What if you encounter problems and can’t meet your objective? If you
are consistently failing to meet your goals, they may be too aggressive. Try
for an easier target. If things get really tough, cease live trading and switch
to a demo account until you regain your footing. Some traders feel that
demo trading is beneath them, but sometimes you have to sacrifice your
ego if you’re serious about making money as a trader. Don’t allow foolish
pride to stand in the way of your long-term success.
