Techniques for setting goals and benchmarks based on your trading journal data

Posted on 2023-05-08

One technique for setting goals and benchmarks based on your trading journal data is to use a SMART goal framework. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Here's how you can apply this framework to your trading goals:

  1. Specific: Be specific about the goal you want to achieve. Instead of saying "I want to be a profitable trader," state "I want to achieve a 20% return on investment within the next six months."
  2. Measurable: Your goal should be measurable so that you can track your progress. In the example above, you can measure your progress by tracking your returns on a monthly basis.
  3. Achievable: Make sure that your goal is achievable based on your trading skills, experience, and resources. Setting unrealistic goals can be demotivating and lead to frustration.
  4. Relevant: Your goal should be relevant to your overall trading strategy and objectives. For example, if your goal is to become a long-term investor, achieving a short-term trading goal may not be relevant to your overall strategy.
  5. Time-bound: Set a deadline for achieving your goal. This helps you stay focused and motivated. In the example above, you have set a six-month deadline for achieving your 20% return on investment.

Once you have set your goals using the SMART framework, you can use your trading journal data to track your progress and adjust your strategy accordingly. For example, if you find that you are not on track to achieving your goal, you can review your trades to identify areas for improvement and make adjustments to your trading plan. If you are consistently achieving your goals, you can use this data to set new, more challenging goals for yourself.

Looking to learn about forex? Take our crash courses at our Forex University. If you’re looking to setup a demo trading account then click here. Finally, if you’re looking for Forex Signals, Forex Portugal provides free & premium signals on-demand.

Found this article helpful?

[ 0 Out of 0 Found Helpful ]

Still no luck? we can help!

Submit a ticket and we’ll get back to you as soon as possible.

Support Chat Available
Account login is required to start, please login to your account to proceed.