Now that you have figured out your risk management its time to for you to understand what your goals for the day, week, month and year regarding profit are. We find the best way to create a proper goal setting plan is to reverse engineer the goal setting and start with the amount you want to make. Let's say for argument's sake my goal is to make $128,000 in a year and I'm starting capital is $1000. I need to figure out now what my profit would be each month by compounding $1000 but lets pause for a second and let me explain to you what compounding is. Compounding is the process where the value of an investment increases by reinvesting the earnings. So I would need to compound the initial capital seven times by 100% ROI (return of investment). So this means approximately every seven weeks I would need to have achieved net 100% ROI, so including any losses. Now this means that every week I would need to achieve 14.285% ROI to make 100% over seven weeks. For the first seven weeks, I would need to make $28.57 5 days a week. The next seven weeks I would need to make $57.14 5 days a week. The next seven weeks I'd need to make $114.29 5 days a week, so on and so forth for the whole year. Every seven weeks I would need to make double the amount five days a week for seven weeks. This may seem a bit confusing, so we have attached a small video below to explain better. Below you can also find the different lot sizes you will be trading.
1 Standard lot - 100,000 units - 1.0
1 Mini lot - 10,000 units - 0.1
1 Micro lot - 1,000 units - 0.01
1 Nano lot - 100 units - 0.001