|
|
|
|
|
|
|
Once you know your motivations for trading, the second thing you must know about yourself is: What you want from trading. |
|
|
|
|
|
|
|
|
What are your investment goals? You have heard it before: Setting written goals is importanteven vitalin reaching your dreams. This is especially true for trading. To significantly change your life, you first must know the outcome you desire. If you don't know where you are going, you will end up nowhere! |
|
|
|
|
|
|
|
|
We love the story of the two lumberjacks in the north woods, working side by side. After several hours, one noticed that his partner was not even 1/16 of an inch into the tree! |
|
|
|
 |
|
|
|
|
"Hey Bob," he said. "You're not making any progress." |
|
|
|
|
|
|
|
|
"I know, I know. Don't bother me," said the other. |
|
|
|
|
|
|
|
|
"But," said the first, "you've got to stop and sharpen your blades." |
|
|
|
|
|
|
|
|
"Stop? I can't stop! I've got to cut down this tree!" |
|
|
|
|
|
|
|
|
Here is a man consumed by activity instead of being focused on achieving his goal. That's the problem with too many traders. They're too busy trading to sharpen their skills. They don't define their goals. You should create two kinds of goals: |
|
|
|
|
|
|
|
|
1. Goals for skills and performance. |
|
|
|
|
|
|
|
|
Goals for Skills and Performance |
|
|
|
|
|
|
|
|
These are targets to improve your skills and performance. They need to be specific, realistic, and measurable. For example: |
|
|
|
|
|
|
|
|
To take a specific class, by a certain date |
|
|
|
|
|
|
|
|
To devote a certain amount of time to chart review each day |
|
|
|
|
|
|
|
|
To trade every trading signal |
|
|
|
|
|
|
|
|
To set a stop loss before entering any trade, and to hold to that stop loss without exception |
|
|
|
|
|
|
|
|
These are targets for desired results. Again, they need to be specific, realistic, and measurable. For example: |
|
|
|
|
|