Before you think about becoming a sole proprietor, you must first define the goals you want to achieve. First, you need to be realistic when setting your goals. In addition, they must be measurable.
For example, a goal might be to achieve an annual investment return of 20%, have a profit of $10,000 at the end of the year, and earn a total of $2,000 per month.Your goal should be easily measurable.
It is also important that your goal is long-term. Therefore, it is advisable to set an annual or quarterly goal instead of a monthly goal.
The concept of realistic and achievable goals is essential. Many novice traders enter the financial markets hoping to quickly become a professional trader and make a fortune within a few days or weeks.Unfortunately, these unrealistic or at least difficult goals can lead them to take big risks in the stock market and often suffer significant losses.
Likewise, some inexperienced traders are obsessed with making profits, and this fear can lead to trading mistakes that often result in losses.
Define your trading profile
There are many trading styles and profiles and you need to define your own. How do you?
Your Business Goal: You will probably invest differently if you want to buy the latest TV or are planning for your retirement.
Even your age can play a role: A 20-year-old single student may have a different approach than someone who wants to become a trader at 40, someone who has worked for years to accumulate investment capital, and someone who has dependent children.