Setting and Accomplishing Realistic Trading GOALS…

“A goal is not always meant to be reached, it often serves simply as something to aim at.” — Bruce Lee

I realized early on in my trading career that one of the most common characteristics in almost all successful traders I’d met was they are all very goal-oriented. In fact, I’m not sure if you realize it or not, but that’s when people are at their best.

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 achieve that goal. It does it quite automatically without having to fight
using willpower.

But there is one big catch. You may have a goal clearly in mind, but it must have three important characteristics:

• Your goal must be realistic.
• Your goal must be attainable.
• 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 probably not very realistic because it isn’t within your capabilities yet.

Your goal must be attainable. — This is similar to a goal being realistic. Again, your goal must be within your capabilities. So, an example might be if you are trying to average $25 — $50 a day with your trading . You have 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 somewhat. 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 all the time. 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.

Realistic, measurable goal-setting is extremely important to being successful in trading. In fact, just trying to make money each day (without a goal) is a road to failure.

Usually successful traders stress how important setting goals was to their success. But you even need to take it a step further. Not only do you need realistic, measurable goals, but you need to visualize yourself reaching those goals on a daily basis.

“Just as important as setting specific goals, you must visualize yourself successfully reaching those goals each and everyday. If you can’t see yourself in your mind’s eye as a success, there is no chance you will become successful. It just won’t happen!”

I will tell you from first hand experience that when I’m trading well and making good money, it’s definitely because I’m totally focused on my specific goals. And, on the other hand, when I’m trading poorly, it’s because I’ve lost sight of my goal and I’m not seeing it clearly like I should be.

And you know what? It definitely shows up in my trading results every time.

The more you practice realistic goal-setting, the easier it will get for you to do on a consistent basis.