What are reasonable goals?

I keep reading all these books and articles and hearing repeatedly to set reasonable goals. OK no problem - I got the message. But they never say what is reasonable. Lots of examples of what isn't - I'm not going to turn $10,000 into a million in a year or two. But what IS reasonable to expect?

I have $50-100K I can put into this but won't do that until first I'm profitable on a demo account and then I'm profitable on a $10K live account. But realistically, after 2-3 years part time trading experience and a lot of studying, what is a reasonable goal? 20% a year return?

Like everyone else I'm hoping to eventually leave my crappy, life-force-sucking, mind-bogglingly-boring, pride-destroying, health-sapping, crawling-on-my-belly, hope-extinguishing job to make $50K a year from trading. And I'd like to do it in 5 years before I'm a complete lunatic.

Squid

Squid,

Looks like it's me and you on the forum today

When I first started out, I made all kinds of spreadsheets about how many pips I wanted to make and how much money that would yield. I thought that these were going to be my goals. In fact, to some degree, I still do that.

In reality, I found that if I wanted to be successful at Forex, I needed to change my attitude about what should be my goal. Having a monetary goal caused a significant amount of stress. It was always black and white - either I was making my goal or I wasn't, so there wasn't a lot of introspection about how I was actually doing or what improvements I needed to make.

I started thinking about what I really wanted out of this and what was the determinant of success. I realized that it wasn't money - money was the side effect, the benefit, but not the goal. What I really needed in Forex was consistency. I wanted to know, with some degree of accuracy, how consistent I am with trading.

That goal changed my whole approach to what I was doing. I ended up focusing on a system and, rather than worrying about the money I was making or losing, I focused on how well I did or did not follow the rules - how consistent I was at trading the system.

So, in my view, you should have only one goal right now - to be a consistent trader that follows a set of trading rules religiously. Be consistent and the money will follow. With that in mind, start out on a demo account and find a system you're comfortable with. Learn it and trade it. Once you feel that you are consistent with it on demo, move to a micro account. Once your criteria for consistency is met, move to mini's, then standard lots, etc. Be consitent! Be consistent!

Right now, I know that 85% of my trades are successful when I follow my rules. How do you think that knowledge affects my consistency in following the rules and what direction do you think my account is heading as a result?

Regards,

stockwet

Ah Grasshoppers. If you love the money, you will loose the trade. If you love the trade, you will get the money.

Stockwet is right money is a side effect of the trade. It is all about the trade. Learn to do it well. Learn to love it. If you think any different you are doomed from the start. This whole thing will turn into that dumba$$ job that you now hate and you will be right back where you are now. The dream will die and you will be broken and broke.

Hi Squid,
{and Stockwet. at least 3 of us on now}

The beginning of anything is probably the toughest part.

"Where do I start?"
"Where should I be heading?" {goals}

You have already answered the first question for yourself. That's apparent by the facts that you are here and you have a Demo running somewhere.

The second question is far more complex as it pertains more to the individual asking it than the answers any group or other individual may give you.

I'm an old grandfather that during my life so far have been in the position of educator or coach or mentor or whatever you want to call it, but the essence is the same.
How do you assist others to achieve their potential without cramming it down their throat to the point that they quit not only disappointed in you, more importantly, disappointed in themselves?

The answer, most certainly, is not "By 'x', You should be 'y'." That's Gambling.

While coaching young men in Rep Soccer, {these guys were good} I never told them "We have to beat these guys." What if we didn't? Where were we then? A risk {gamble} I wasn't willing to take.
I may have said, "We can beat these guys and this is how we are going to do it."

There is an inherent gene in a person that goads us into looking into the future and "dreaming" of what life will be like when . . .
All this does is suck energy away from the task at hand.

BMc truism.
If you focus on the prize, it will elude you.
If you focus on the task, the prize will fall into your hands.

Conclusion {finally}

Do NOT set a target goal of 'x' pips or $ / day,week or year.

Do set a limit on how much of your grubstake you will risk to the market. Capital Preservation is paramount.

Focus on the Trade. At every point in the trade you should have a logical reason for being in that trade. This includes a logical reason as to where you [mentaly or otherwise] set your Stop Loss.
I'm willing to lose $200.00 on this trade because that's 2% of my account is not a logical reason.

My reasonable goal is to make the amount of money I was making at work each day. My goal used to be making as little as 5pips per day when I first started. Very reasonable.

I think a reasonable goal is 10 to 20% per month ...

Bemac, that was a great reply to Squids question. I particularly like the three quotes I've pulled out above.

I think you're a crusty, tough, hardnosed old codger, but I respect you for your hard earned wisdom which you share in this forum. That's why whenever I see your name pop up, I always stop and read what you've posted.

Dial

Well said ye ole' wizard.

I know everyone is attracted to trading because of prize/money.But once in the market, the first thing which is revealed to every trader sooner or later that learning is the first task.Trading is learning otherwiser it is gambling.After learning how to trade sucessfully, the task of consistency and discipline comes.
When one is consistently succesful in his trades then comes question of target.
What I have felt is that I entered with idea to make money but now I feel I am in love with trading rather than money.The joy I feel when I make a good trade is more than what amount of money I earn.