JOURNALING

Page 4

A common vision amongst traders is to someday conquer the market and be featured on the front cover of the wall street journal. A trader's dream of turning their first $5000 into $55,000,000 is one not to be tampered with. Having such a vision is not wrong, however sooner or later it will be time to wake up.

It is essential that you set yourself realistic goals. This does not mean that it impossible to one day become a millionaire, it does however mean you must first understand that a skill of great value takes time to cultivate. After all, Rome was not built overnight! Set yourself monthly goals; create an on going honest relationship with your trading journal from the moment you begin trading, do not be disheartened by the losses that may occur along the way, you should take these as a unique opportunity for self development.

Forget about the monetary figure you wish to make on a daily basis and the amount you wish to multiply your account by. To become a successful trader the only goal you will embed in your mind is the goal of consistency. Consistent analysis, consistent drawdowns, consistent pip count and a consistent positive attitude!

"Money made by mistake is like a loan with a very high default rate"

What does this mean? It means that even if you were to attempt high risk trading where you yield outrageous amounts of return, one day your luck will expire and you will see yourself losing all of the profit you have accumulated. The best lesson is dished out by time; there is an exceptionally high probability that the money you have made without the correct knowledge and skill will be returned to the market, along with your deposit. This business is a skill, a profession if you like, not a gamble.

To conclude, your trading plan must be as honest and as organized as possible. Further questions you should factor into your plan are:

How many times a day will I check the market?

What currency pairs will I be trading?
How many trades will I be in at any one time?

What is my maximum risk on my account?

What kind of trader am I?

What is my trading style going to be?