The problem with unrealistic targets
A goal like "double the account this month" pushes you to keep adding risk your original plan never called for, just to hit the number. The moment a target starts distorting your behavior, it was already the wrong target.
How to set a realistic one
- Work backward from your actual historical data — average win rate, risk-reward, trade frequency
- Set targets quarterly or yearly rather than monthly, to reduce pressure from short-term variance
- Set a risk target too, like "keep MDD under X%," not just a return target
Process goals vs. outcome goals
"20% return this month" is an outcome goal — largely outside your control given market conditions. "Honor my stop-loss rule 100% of the time" or "never exceed my daily trade limit" are process goals, fully within your control — and over the long run, these process goals are what produce the outcome.
Verify your target against your own data
Base your next target on the actual average return recorded in your journal, so it becomes a number grounded in evidence, not a guess. Every time you set a goal, ask yourself: is this number realistic given what my own historical data actually shows?
← Back to Guide Index