Having the goal of getting rich in the stock market is really lame. In fact, it's suicide on Wall Street.
I realized early on that among the most common characteristics in most prosperous traders I’d came across was that they set goals.
The most common characteristic of traders that have washed out of the market is that they never set goals and the only goal they had was to get rich trading stocks.
People are at their best when they set goals. People perform at their best when they have a goal clearly in their mind. That is the way the human mind works. When we have a goal clearly in our minds, our subconscious works very hard at helping us to accomplish that goal. It does it quite automatically without being forced to reason using willpower.
A goal must have three important characteristics:
1) Your goal must be realistic.
2) Your goal must be attainable.
3) Your goal must be measurable.
Your goal must be realistic. This means that your goal has to be something that is within your capabilities. Sure, it may be possible to make a million dollars your first year trading, but it’s, in all likelihood, not very realistic because it isn’t within your capabilities yet.
Your goal must be attainable. This is akin to a goal being realistic. Again, your goal must be within your capabilities. So, an example might be if you are seeking to average $100-$200 a day with your trading. You hold a much better chance of being able to reach that goal versus the goal to make a million dollars this year. Don’t get me wrong, if you are doing very well with your current goal, there’s no reason you can’t raise it within reason. But you must start with a goal that is attainable and then you can build on it. I highly suggest starting with a small goal and moving up from there.
Your goal must be measurable. This is one I see people making a mistake about day in and day out. Everybody wants to get rich or make a fortune in the market. That seems to be everybody’s goal. But you know what, that isn’t really a goal. A goal must be measurable. You must be able to know when you’re far away, close, and when you’ve achieved your particular goal. If it’s not measurable, you won’t know when you’re there, and even worse, you won’t know how close you are to reaching your goal.
Take a moment to create a short term trading goal. Leave any comments you might have below. Thank you and happy improved trading.
Your Trading Coach
(because everyone, even Lyoto Machida, needs a coach)