This is the problem…
Many beginner traders start trading with the impression that they can make money right away.
Others believe they have a “Holy Grail” strategy aimed at getting 50% returns in a week!
In time, these approaches tend to bring you back to break-even…
…and ultimately, loss!
But that doesn’t end there.
As a result, these very same traders start their hunt for the next quick fix…
…Search for the next “best” metric…or this month’s “killer” trading algorithm…
The cycle begins again!
What is happening to keep traders in this fruitless loop?
There is no better approach to trading.
Well, that’s exactly what I want to show you in today’s guide.
Specifically, you learn:
- Why unrealistic expectations create a “cycle of loss” in a transaction
- How having a stable income stream will improve your trading mindset
- The importance of outcome-based goals and process-oriented goals over three key trading goals that all beginners should focus on for long-term success.
By the end of this article, there is a clear blueprint to get closer to trading as a business.
Something that minimizes emotional stress and maximizes your long-term success!
Isn’t it good?
So let’s get started!
The truth about the “loss cycle” and how it maintains your trading goals
There’s nothing wrong with dreaming big in a transaction.
It’s not impossible to trade your full-time job!
One day in the future, trading can make you a lot of money each month, but…
…Dreaming about it will not teach you anything about reality.
It acts as a distraction and can put you in a cycle of loss.
Let me explain…
Why unrealistic goals in a transaction may hurt your outcomes
As a new trader, you often translate your goals into expectations…
This could lead to projecting such expectations into the market…
And what happens when you hit that first losing streak?
That’s right, the market will crush your expectations and drill into you!
And what happens after a few wins in a row when the market gets into your head…?
You guessed it…
You lose confidence!
Questioning yourself, you begin to search for that “Holy Grail” with a deal, the “best” strategy you can find.
ending?
I was caught up in a never-ending cycle of losing my account and exploding it…
Come on, my friend…
It all sums up in this one thing:
Unrealistic expectations.
How did you retreat from your trading goals (and what can you do about it)
I know what you’re thinking right now…
“If the trading doesn’t replace my full-time job, I need to pursue something else!”
“If the transaction is just a gamble, I want to go to the casino!”
Honestly, trading isn’t for everyone.
And for some traders, they grow to make it happen at some point in their journey.
But there’s one thing you should ask before packing it here…
Transactions are business, not work
There is financial security to work.
However, expecting such stability in a transaction is a bad idea.
why?
Because, in reality, starting a trade is similar to growing your business.
And like any business, it may be months or years before the results appear!
So, how should you approach trading as a beginner?
What are the right trading goals for consistent profitability?
good…
Reduce your expectations for trading!
Remove them all if possible.
And yes, I know it’s easier than I say!
However, there are great ways to help reduce pain from the start…
There is a stable source of income
You may be a student planning to use your allowance to trade, or employees earning regular wages…
However, when starting a trading business, stable income can be a source of a large-scale amenity.
It certainly removes pressure when trading!
Importantly, it can also allow you to accept learning. It’s exactly where you need it.
Now I know I’ve shared a big image of how much business rewards – it may seem far more exciting than work!
However, building security is the first important safety net, just in case things go wrong.
At first, you need to accept that there is a lot of uncertainty in every business.
Only by having a stable income source (no matter how big or small) can we reduce the risk of that uncertainty.
Does that make sense?
So let’s make a plan!
Trading goals that drive you towards profitable transactions
So…
What trading goals do you need to focus on at first?
Trading Objective #1: Explore different types of trading methods there
At this point, you should not be in a live transaction yet.
Get a demo account, but treat it as if it’s really your own money.
It’s time to get some perspective on trading…
…See how others exchange it…
…and explore different ways to profit from the market!
There are trading methods such as trend follow…
Swing trading…
Or a momentum trade…
Although this guide does not provide a detailed explanation, please check out these articles for more information.
Trend Trading Strategy Guide
NO BS Guide for Swing Trading
An important guide to momentum trading
So basically, the first goal of a trading is to take a step back and learn about the different ways to make a profit from the market…
…To understand what works and what is useless!
Great confidence in a transaction only occurs after you begin to feel comfortable with what you are doing.
Please remember.
Trading Objective #2: Developing and Testing a Trading Plan
At this point things start to fall into place.
My previous goal was to immerse myself and gain some perspective on trading.
The next goal is to truly develop your approach!
And this is an important tip for success…
…We need to try to model successful people.
You don’t want to waste time reinventing the wheels!
Instead, they work on improving the already-tested and tested approach and adapt to their approach.
Don’t forget to reduce “trial and error” by modeling profitable people and successful deals.
Do you need a successful day trader in the stock market?
You can check out the humble trader (Shay) here.
What about successful day traders in the forex market?
Why you have Dalek Dalgo, you have someone you can check out here.
Successful price action traders in various markets?
There’s Rayner Theo here!
And of course, it doesn’t stop there. There are a wealth of successful traders out there.
But this is the bottom line…
Choose the trading style that resonates with you and learn from people with proven track record in the market.
Trading Objective #3: Start live trading
Once everything is in place, including the well-written trading plan, it’s time to start live trading!
It’s important to remember – you want to start small.
why?
Because even if you have a strategy that will ultimately work, it doesn’t mean you’re confident in trading it for your hard-earned money.
The difference is why many traders can get a return on demo trading, but once they start trading live…
…It all goes out the window!
Starting small with live trading will match your trust level (small).
It also places you in a mindset that does not put pressure on you to do it.
By not being too attached to your money, you can focus more on implementing your strategy correctly.
If you start to see positive results, you need to add more funds.
In that case, you’re betting on what works!
Don’t forget now…
The goals listed here are minimal.
But here it is sufficient to ensure that the learning curve is shortened. It’s less painful and less barriers to market entry.
fundamentally…
These trading goals are designed to help you build a sustainable trading business, but they are simply the first chapter of your trading journey!
As you achieve these goals one by one, it will be time to start growing.
At that stage, you’re ready to take things to the next level!
It is yet another beautiful aspect of each trader’s journey to success.
Conclusion
I’ve made this guide snappy as much as I can so that you can refer to it at any time.
Use it as a blueprint to save time and money in the long run, reducing your trial and error time!
To sum it up, here’s what you learned today…
- The “cycle of loss” in trading as a beginner occurs when you project your expectations into the market
- One way to reduce attachment to expectations in trading is to have a stable income stream.
- Some of the best trading goals from the start are process-oriented, such as building a trading plan.
Each trader will take a unique approach.
Your journey may be different from others!
The goals chosen may be closely matched to what I mentioned, but individual approaches also always have scope.
In that memo, what trading goals do you think can be added to this list?
Have you tried some of them in the past?
Have you succeeded? And what aspects have you learned the most?
Please let me know in the comments below!
