Strategy for Determining Target Profit

Strategy for Determining Target Profit

Without realizing it, the profit target that is in our mind's mind can affect the success or failure of our trading. Therefore we need to regulate what is our target in the future, not just a dream, but we really can achieve it.

Business on a very liquid market such as forex and binary gives us the opportunity to get the maximum profit. In 1 day we can get 100% profit even more than the capital we trade. Such conditions are really tempting and tempting traders, especially beginner traders, to make profit targets that are sometimes too big.

The problem is when the target is large but we do not have the appropriate ability to achieve it. That is, as a beginner who does not have accurate analytical skills and does not have a strong money management, you should not overly target large profits. Because when the transaction is lost, we are further away from the target. Now this is what makes our mental trading collapse, as if all the roads are deadlocked.

This forex and binary strategy is how to determine realistic profit targets. I don't want to patronize, but let's correct the size of the profit target that we have set again, both the daily target and the monthly target. Because according to my observation, the magnitude of the profit target is very decisive for our trading behavior. The bigger the target, the greater the mental pressure we feel to reach it. It's as if we fail if we can't reach it. Even though on the other hand, big targets can make us more excited.

For beginners, it's not appropriate!
In the conventional business / real sector business, normally and usually the profit is around 10% - 30% per month of total capital. So, if we consider trading like a conventional business, then naturally our profit target is around 10% - 40% per month. Take for example 40% per month. This means that with trading time of 20 days in 1 month, if we divide equally, we can achieve this 40% target by targeting 2% every day.

I am sure this is very easy to achieve. What's difficult is holding back the ego to gain more.
So, if we agree and intend to only reach 2% per day, then if our capital is only $ 200, our target is only $ 4 / day.
Can it be achieved? Very can !!
But the $ 4 / day yield is very small? If you are serious about making trading business, prepare capital seriously!

Then the question "what if it loses?" Even though the money is for the cost of daily living. "That is why we have to separate family finances from trading finance, family finances with business finance! Trading money that you really prepare for business

Prompts, if you consider trading this business, prepare your capital seriously. Prepare more capital, so that when the target is reasonable and small, the results are still enough to finance your life.

But if you consider trading this game, no matter what the capital, whatever the target, this is not a problem. But notice what will happen to you meditate on it, hopefully it will be useful.

Conclusion

Then how much is a reasonable target?
Some of us set a target of $ 50 per day. Is this possible? Of course ... But is it appropriate to set a target of $ 50 / day while the capital is only $ 100?
Worth it! but for master traders who already understand well about the market.