Profit targets analysis
Nowadays Forex has a good prospect for traders. Anyone who dares to enter the Forex market can have a great opportunity to produce or achieve maximum profit. A promising target is truly seductive and tempts traders to immediately take a decision to enter Forex market without making a proper analysis.
My question: what is your profit target in Forex trading activities? Generating target profits can bring you to success or failure of our trading. Therefore, we need to set it up and try to accomplish.
The bigger target is, the bigger mental pressure to achieve it is put on you. On the other hand, a big target can make us more excited.
Some traders set a big target but do not have any appropriate skills to achieve it. A beginner does not have yet accurate analytical skills and a strong money management plan.
So how much is your reasonable target?
For example, the target in the amount of $50 per day whereas your capital is as low as $ 100 would only fit a professional.
In real sector business, gain about 10% - 30% per month as compared to the amount of capital is normal. Thus, our fair profit target is in the rate 10% - 40% per month as well. Take the example of 40% per month. That is the trading time of 20 days within 1 month, if we divide evenly, then 40% can be achieved by targeting 2% per day.
I'm sure this is very easy to achieve. The difficult part is to resist the ego to achieve more.
So, if we agree and have the intention to reach 2% per day with just $ 200 capital, our target is only $ 4 / day.
What if the loss will touch money for daily living expenses? That is why we have to separate the family finances from business finances!
If you consider Forex trading, prepare your capital seriously. Prepare a larger capital, so that when the target is reasonable and small, the results are still enough to finance your life.
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