Why Should We Set Up Effective Trading Goals?

It is important to set trading goals for two main reasons – to help you stick to your trading plan and to allow you to trade more consistently. For those new to trading, this will mean setting a process-orientated goal rather than one focused on outcomes. For example, goals based on following strict risk management and sound technical analysis, and even a daily routine involving exercise and a balanced diet, will encourage more consistent trading.

You should always have a trading plan that covers how you will enter and exit trades, how your money will be managed, the markets traded, and your risk parameters.

And keep it simple. For example, selecting a few effective trading indicators rather than trying to apply all of them will result in better focus. Simplifying your technical analysis approach can cut out a lot of noise and contribute to becoming a better trader.