Just over a month into 2025, global financial markets have already faced significant turbulence and votality. Fluctuating economic conditions, Trump-driven geopolitical tensions, and the Deepseek tech shock have left traders navigating unpredictable waters, with even the most experienced feeling the strain in an environment where volatility is the only certainty.
In times like these, Roger Eskinazi, Managing Partner at Tickmill, says a trading plan with clearly defined goals is critical for all traders – regardless of experience. “While experience brings market intuition, it does not eliminate the need for structure and discipline. In fact, setting and refining trading goals becomes even more critical as traders look to sustain long-term success, adapt to shifting conditions, and improve performance year after year.”
For those who have yet to set their 2025 trading objectives, Eskinazi says it’s not too late. “By establishing realistic and measurable goals now, traders can regain focus and set themselves up for sustainable growth in the months ahead.”
Look back before looking forward
A trader’s past performance is one of the best indicators for setting realistic targets. Instead of arbitrary profit goals, Eskinazi advises seasoned traders to analyse historical returns, risk exposure, and win-loss ratios to create data-driven benchmarks. “Key performance indicators (KPIs) such as Sharpe ratios, maximum drawdowns, and trade expectancy can provide valuable insights into sharpening up your strategies for the year ahead,” he explains.
Be SMART about goal setting
Advanced traders use the SMART framework to ensure that all goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
- Specific:Define clear objectives, such as achieving a 10% annual return or maintaining a maximum drawdown below 5%.
- Measurable:Set quantifiable targets that can be tracked over time.
- Achievable:Ensure goals are realistic given market conditions and past performance.
- Relevant:Align goals with personal financial aspirations, such as long-term wealth growth or income generation.
- Time-bound:Establish a timeframe, whether quarterly performance reviews or annual profit targets.
Incorporate robust risk management practices
The market uncertainty experienced in recent months has highlighted the importance of robust risk management. Rather than simply setting stop-losses, Eskinazi encourages seasoned traders to integrate advanced techniques such as dynamic position sizing, volatility-adjusted exposure, and diversification across asset classes. “By defining risk-adjusted return goals, traders can ensure they remain profitable without overextending themselves in unpredictable conditions,” he says.
Look out for new developments and remain flexible
While trading goals are essential to stay on track, Eskinazi warns against following them blindly. “When it comes to trading, flexibility is a critical survival skill. You must be able to pivot quickly, seamlessly adapting your goals to unpredictable market conditions or events. To do this, it’s important to keep your trading goals in mind, while still maintaining an open mind to new information that may require some goals to shift.”
In this sense, setting trading goals is not just about profit targets – it is about consistency, adaptability, and refining an edge in the market, says Eskinazi. “A structured, yet flexible, approach not only mitigates emotional decision-making but also ensures long-term sustainability in an ever-changing market landscape,” he concludes.
