The larger the profit targeted, the greater the potential mental pressure one may feel. Do you feel capable of reaching a high target profit? "Never Be Content with Something!" You might be familiar with this teaching, which advises against being satisfied with current achievements. When setting targets for the future, ideally, we should always seek improvement from what has been achieved before. In the trading world, opportunities for significant profits are indeed abundant. In fact, in a single day, you might even generate profits reaching up to 100% of the initial capital. Of course, this is highly appealing to traders aiming for substantial gains.
However, it's important to set profit targets wisely and implement consistent trading strategies to achieve them. In the context of forex trading, there's a common phrase: "the larger the profit target, the greater the mental pressure to attain it." Yet, behind that mental pressure, at least having a large target can be a catalyst for high spirits. But the question remains: do we have the adequate skills to achieve such a large profit target?
Determining the Magnitude of Target Profit
How much profit should be targeted? Certainly, there's no specific figure applicable to all traders. Each individual has different needs and abilities. However, what needs attention is how much capital you have to achieve the targeted profit. In business, profits usually range from 10% to 30% per month of the capital amount. If you consider trading as a serious activity, it's reasonable that with a capital of 100 USD, you aim for profits ranging from 10% to 40% per month.
For example, with a 40% profit target per month and 20 trading days, you can aim for a daily profit of 2%. Thus, if your capital is 200 USD, the targeted profit can reach 4% per day. However, it's important to note that these figures are just simple representations to grasp the concept. Because a 4% profit target per day is actually a relatively small figure.
Key to Success
The main key to trading success is thorough preparation. Prepare your capital seriously, and ensure to separate trading capital from everyday needs money. This is important because in trading, losses are also part of the process. If you view trading as a serious activity, prepare your capital carefully so that trading results can meet your living expenses.
Stay confident that you can achieve the set profit target. However, remember not to be too tempted to achieve larger profits than targeted, especially if there are no supporting signals. Avoid setting overly ambitious profit targets, as it can lead to stress and disappointment if transactions incur losses. Most importantly, maintain a balance between ambition and reality in setting your profit targets.
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