Successful trading isn't about "making money". It's about executing a plan that MAKES money as a side effect. Setting clear, achievable goals is the first step.
The 3x Statistic
Traders with written, defined goals are 3x more likely to achieve profitability than those who just "trade to win".
Types of Goals
- Maintain 1:2 Risk/Reward
- Follow plan on 95% of trades
- Max drawdown limit of 5%
- Review journal weekly
- Analyze charts for 30 mins daily
- No trading during high emotion
- Wait for candle close confirmation
- Always use stop loss
Using the SMART Framework
Vague goals like "get rich" fail. Use SMART goals: Specific, Measurable, Achievable, Relevant, Time-bound.
Example Goal
"I will achieve a 5% account growth"
Specific: 5% growth.
Measurable: Portfolio balance check.
Achievable: Realistic based on current skill.
Relevant: Builds capital.
Time-bound: "...by end of this month".
Setting Profit Targets & Scaling
Don't just have an entry plan—have an exit plan. A common strategy for volatility trading is scaling out.
- Target 1: Take 50% profit at 1:2 R:R. (Moves stop to breakeven).
- Target 2: Take 25% profit at resistance.
- Runner: Leave 25% to catch the "moon" move, with a trailing stop.
When to Adjust
Goals are not consistent. If the market shifts from Bull to Bear, your "10% monthly growth" goal might become unrealistic. Adjust your goals to "Preserve Capital" during choppy markets. Survival comes first.
Conclusion
Set goals for your ACTIONS, not just your RESULTS. You can't control the market, but you can control your execution. If you execute well (Process Goals), the money (Outcome Goals) will follow.