Setting and Achieving Trading Goals: A Roadmap to Replacing Your Income
Many aspiring traders enter the markets with dreams of financial freedom, but few have a clear plan to get there. The idea of replacing your paycheck with trading income sounds exciting, but without defined goals and a disciplined approach, it can become frustrating and unsustainable.
In this article, we’ll walk through how to set trading goals that are realistic, measurable, and aligned with your ultimate objective: replacing your income and reclaiming your freedom.
Why Goals Matter in Trading
Goals are more than motivational slogans. They act as a GPS for your trading journey. With a clear destination, you can:
Measure progress.
Stay disciplined.
Adjust your strategy when needed.
Avoid emotional decisions.
Trading without goals is like sailing without a compass. You may feel busy, but you're unlikely to reach a meaningful destination.
Step 1: Define Your "Freedom Number"
Before you set any trading goals, ask yourself this question: How much income do I need to replace to live freely on my terms?
This number is personal. For some, it may be $3,000/month; for others, it could be $10,000/month. It should cover:
Essential living expenses (housing, food, transportation)
Health insurance
Debt payments
Emergency fund contribution
Optional lifestyle costs (travel, hobbies, savings)
Example: If your monthly budget requires $5,000 to sustain your desired lifestyle, your first long-term trading goal is clear: generate a consistent $5,000/month through trading.
Step 2: Reverse Engineer Your Income Target
Once you have your freedom number, reverse engineer how to achieve it with trading.
Let’s say you have $50,000 in trading capital.
To generate $5,000 per month, you need:
$5,000 / $50,000 = 10% monthly return
Or roughly 2.5% per week
Now, 10% monthly returns are achievable, but they require:
A structured, proven strategy
Tight risk management
Consistent execution
That’s why at Freedom Income Options, we teach traders how to realistically aim for 1% per week using defined-risk trades like credit spreads.
So a $5,000/month goal would require:
$125,000 account at 1% per week
OR scaling from $50,000 by compounding weekly returns over time
This reverse engineering helps you:
Set realistic expectations
Choose the right strategy
Understand the power of compounding
Step 3: Set SMART Trading Goals
SMART goals are:
Specific – Clearly state what you want to achieve
Measurable – Include numbers, time frames, and metrics
Achievable – Grounded in your current resources and skills
Relevant – Aligns with your ultimate purpose (income replacement)
Time-bound – Includes a deadline
Examples of SMART Trading Goals:
"Earn 1% weekly returns using credit spreads over the next 90 days."
"Reach $100,000 in account value within 12 months by compounding 1% per week."
"Log every trade and review performance weekly for the next 8 weeks."
Notice that these goals are action-based and within your control. They focus on consistency, not just outcomes.
Step 4: Break Big Goals into Weekly Targets
Replacing your income may take months or years depending on your capital, but what matters is weekly progress.
Use the Freedom Income Engine framework:
One high-probability trade per week
Targeting 1% return
Risk-managed, rules-based
Each week becomes a checkpoint:
Did you take a qualified trade?
Did it meet your entry criteria?
Was the outcome in line with your risk/reward plan?
You’re building a repeatable process. Weekly goals give you the feedback loop to improve.
Weekly Checklist Example:
Step 5: Track Performance Like a Business
If your goal is to replace your income, treat your trading like a business.
Businesses track revenue, expenses, and KPIs. Traders should track:
Win rate
Average return per trade
Maximum drawdown
Weekly/monthly returns
Trade setup success rate
Use a spreadsheet or trading journal to record every trade. This helps you:
Spot patterns
Identify profitable setups
Eliminate costly mistakes
Refine your process
When you see the data, emotions take a back seat. You trade based on what works.
Step 6: Build a Feedback Loop
Setting goals without review is like setting a GPS and ignoring the turns.
Every week, review:
Did I follow my trading plan?
What worked well?
Where did I deviate?
How can I improve next week?
This feedback loop is what separates successful traders from amateurs. It helps you:
Stay accountable
Course-correct quickly
Build confidence over time
Consider joining a community (like our Freedom Income Options Telegram group) where you can:
Share goals
Get feedback
Learn from others
Step 7: Celebrate Milestones
Trading can be mentally taxing. Celebrate progress to stay motivated.
Examples:
4 weeks of consistent 1% returns
First $1,000 in trading income
Completing 20 journaled trades
These mini-milestones remind you: you’re making progress, and progress builds momentum.
Celebrate, but don’t get complacent. Stick to the system.
Final Thoughts: Replace Your Paycheck, Reclaim Your Freedom
Your trading goals are the bridge between dreams and reality. With a structured plan, consistent execution, and measurable progress, you can build a new income stream that gives you control over your time and future.
We believe anyone can do this—as long as they have a system, a community, and a commitment to getting 1% better each week.
Want help setting and achieving your trading goals?
Click Here To Get Access to my LinkTree
Helping you replace your paycheck with options—one high-probability trade at a time.
Casey Stubbs
Freedom Income Options
Replace Your Paycheck, Reclaim Your Freedom.