Preschool>= Lesson Status ?
Kindergarten>= Lesson Status ?
Elementary>= Lesson Status ?
Grade 1 Support and Resistance Levels
Grade 2 Japanese Candlesticks
Grade 3 Fibonacci
Grade 4 Moving Averages
Grade 5 Common Chart Indicators
Middle School>= Lesson Status ?
Grade 7 Important Chart Patterns
Grade 8 Pivot Points
Summer School>= Lesson Status ?
High School>= Lesson Status ?
Grade 9 Trading Divergences
Grade 10 Market Environment
Grade 11 Trading Breakouts and Fakeouts
Grade 12 Fundamental Analysis
Grade 13 Currency Crosses
- What is a Currency Cross Pair?
- Crosses Present More Trading Opportunities
- Cleaner Trends and Ranges
- Taking Advantage of Interest Rate Differential
- Obscure Crosses
- Planning Around News and Fundamentals
- Creating Synthetic Pairs
- Euro and Yen Crosses
- How to Use Crosses to Trade the Majors
- How Cross Currency Pairs Affect Dollar Pairs
- Summary: Currency Crosses
Grade 14 Multiple Time Frame Analysis
Undergraduate>= Lesson Status ?
- Why Keep a Trade Journal?
- Benefits of Keeping a Journal
- What Should You Record in Your Journal?
- Potential Trading Area
- Entry Trigger
- Position Sizing
- Trade Management Rules
- Trade Retrospective
- Trading Journal Statistics
- Reviewing Your Trading Journal
- Difficulties of Keeping a Trade Journal
- Summary: Keeping a Trade Journal
Graduation>= Lesson Status ?
- Which Trading Style is Best for You?
- Which Currencies Should You Trade?
- What is Your Level of Trading Experience?
- Should You Be a Discretionary, Mechanical, or Hybrid Trader?
- What Kind of Mechanical System Suits Your Personality?
- What is Your Attitude Towards Risk?
- What Kind of Stop Suits Your Trading Style?
Which kind of returns do you expect to make?
Ahhh. Of course, anybody who's interested in trading certainly has ambitions of raking in some dough. It make sense - trading involves risk, and we expect to be compensated for those risks.
There's no doubt that every trader expects to make profit.
The question that you should ask yourself though is this:
What kind of returns do you expect to make?
Your answer to this question will play a huge role in determining what kind of trading style you will implement, what currency pairs and times you will trade, and most importantly, the risks involved in achieving your goals.
Let's look at an example to help explain this better. Let's say there are two traders, Bruce and Mike. Bruce is looking to score 10% a year while Mike is a little more ambitious - he wants to DOUBLE his account and make 100% returns
As you can imagine, a trader like Mike, who is looking to double his account, is in a very different situation.
It is very likely that Mike will have to take a lot more trades and/or risk more than Bruce. He will have to expose himself to more potential losses if he ever wants to achieve his goal of 100% returns.
Traders will also have to take into consideration drawdowns.
A drawdown is normally calculated as the distance from the highest value of your account to next lowest point. (We'll explain this a little bit more in a following lesson. For now, pay attention in class!)
Each trader must decide how big of a drawdown he or she can accept in order to hit their profit target goals.
On the one hand, there are traders who are risk averse and would rather have small drawdowns. The tradeoff is that this will also limit potential reward.
On the other hand, there are traders who are comfortable with large drawdowns, just as long as their system also yields huge returns.
You will also have to take into consideration how much time you can dedicate to trading. If you can't dedicate a significant amount of time working on your system, reading up on the markets and learning new trading techniques, recording/reviewing your journal, then we can guarantee you that you will have a difficult time hitting your goals.
If you can't make this time commitment, you may have to readjust your expectations as to how much you can make your account grow. We highly suggest that you check out Pipwcrawler's thread about setting newbie expectations
In the end, just know that success depends on YOU.
Do you have the discipline to grind it out consistently to tweak your skills and gain the experience needed to navigate the markets?
If you don't, then expect inconsistent returns, if any at all, over the long term.
While you are logged into your account,
you can save your progress in the School of Pipsology!
- What is a Trading Plan?
- Why Do you Need a Trading Plan?
- Justified vs. Unjustified
- Getting to Know Yourself
- Motivation and Goal Setting
- Risk Capital
- Lifestyle Considerations
- Daily Pre-Market Routine
- Weapons of Choice
- Stick to the Plan
- Summary: Developing a Trading Plan