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ID: 13829359
Updated: 2022-02-28
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![](https://readwise-assets.s3.amazonaws.com/static/images/article3.5c705a01b476.png)

# About
Title: [[Other/Obsidian Starter Vault(Second Brain)/Readwise 1/Articles/Considerations When Defining Trading Goals]]
Author: [[START-WIDGET-5B1FA336-27B4-4301-9C4A-F497AC152130]]
Category: #articles
Number of Highlights: ==11==
Last Highlighted: *2022-02-23*
Readwise URL: https://readwise.io/bookreview/13829359
Source URL: https://www.cmcmarkets.com/en/trading-guides/considerations-when-defining-trading-goals


# Highlights 
Setting precise trading goals can help to enhance one's profit potential when trading the financial markets  ^291086882

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Goals offer direction, something to aim for when trading the markets and give a sense of achievement each time a target is hit  ^291086883

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Goal #1: risk control  ^291086884

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One way to mitigate risk and set a sturdy risk control goal could be to set aside a percentage of your account balance, 2% for instance, on any one trading idea.  ^291086885

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Goal #2: effort to reward ratio  ^291086886

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Doing one's basic groundwork when trading is important, and any time spent scanning the markets can be part of a defined trading goals strategy.  ^291086887

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Goal #3: reviewing how the trades turned out  ^291086888

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experienced traders will agree that learning about the markets never finishes.  ^291086889

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Committing to spend a couple of hours every month to go over old trades really will be time well spent and could deliver real returns for future trades.  ^291086890

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Goal #4: setting profit goals  ^291086891

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If you are realistic about the sort of returns you are expecting, you won’t end up putting too much pressure on yourself for every single trade, and this should help reduce the stress of trading and have a corresponding impact on your results.  ^291086892

# Considerations When Defining Trading Goals

![rw-book-cover](https://readwise-assets.s3.amazonaws.com/static/images/article3.5c705a01b476.png)

## Metadata
- Author: [[cmcmarkets.com]]
- Full Title: Considerations When Defining Trading Goals
- Category: #articles
- URL: https://www.cmcmarkets.com/en/trading-guides/considerations-when-defining-trading-goals

## Highlights
- Setting precise trading goals can help to enhance one's profit potential when trading the financial markets
- Goals offer direction, something to aim for when trading the markets and give a sense of achievement each time a target is hit
- Goal #1: risk control
- One way to mitigate risk and set a sturdy risk control goal could be to set aside a percentage of your account balance, 2% for instance, on any one trading idea.
- Goal #2: effort to reward ratio
- Doing one's basic groundwork when trading is important, and any time spent scanning the markets can be part of a defined trading goals strategy.
- Goal #3: reviewing how the trades turned out
- experienced traders will agree that learning about the markets never finishes.
- Committing to spend a couple of hours every month to go over old trades really will be time well spent and could deliver real returns for future trades.
- Goal #4: setting profit goals
- If you are realistic about the sort of returns you are expecting, you won’t end up putting too much pressure on yourself for every single trade, and this should help reduce the stress of trading and have a corresponding impact on your results.