Trading has become even more popular and sports fans are using the Football index to buy and sell current players with the purpose of making money. This guide will set out how to become successful at trading and give you some top tips on making the most of your trades.
How to set realistic goals as a trader
The main appeal of becoming a trader is, of course, to make some money. Without that incentive, there would be little point in doing it! However, making a lot of money in a short space of time should never be a key priority for a trader, because it’s simply not realistic. The most realistic goal is actually to build a sustainable and profitable trading business over time – instead of a ‘get rich quick’ scheme that is unlikely to materialise. This article will help you decide which goals are the most realistic.
The first aspect to think about when it comes to setting goals is to think carefully about how long it will take you to get to consistent profitability.While there are some unscrupulous individuals out there who claim that they will be able to set you up with a so-called ‘turnkey’ trading business, this is usually too good to be true. In practice, it will usually take upwards of a few months and a lot of hard work to get to a stage where you can make decent profits all the time, and in practice it could be over a year.
It’s also worth setting some goals for how much time you intend to spend at your trading screen. For those who want to trade as a career, the goal here may be something like ‘all day’. For those who intend to trade part-time, a minimum commitment of a few hours a day will be necessary at the outset. You’re likely to find that you can make more money in less time as time goes on, especially with the aid of information sources that provide forex newsand commentary on wider market conditions.
The next goal you’ll need to think about is how much you want to earn. In some ways, the sky is the limit: everyone wants to earn as much as they possibly can, and it therefore may feel counter-intuitive to set limits on this. However, it’s also wise to be realistic about what might and might not happen. Deciding on goals in this regard will depend in large part on how much you start out with: if your deposit is £10,000, for example, then you’re obviously likely to make better returns than someone who starts out with £100. The asset class also matters, with riskier ones tending to produce better returns. But whatever the class, as a percentage, returns of 10% in the first few months are highly unlikely. A percentage point or two over the course of a year, however, may be more realistic.
Trading is about many things – not least strategy, nous and a dash of common sense. However, it’s also about ensuring that you are realistic: if you’re not living in the real world on anything from the amount of time you plan to spend to the amount of profit you aim to make, then it’s unlikely that you’ll be able to keep your trading going in a sustainable fashion over the years.