Goal setting is an aspect of trading which do not receive
proper attention. Goals motivate us to devise a plan and maintain discipline. Goals
drive us to take action and are a must if one is to succeed in all walks of life.
Absence of well defined goals is drifting aimlessly without a proper
destination.
Goals should be realistic and achievable. Otherwise it may
lead to frustration and discouragement. Better to start with realistic,
achievable goals and raise the bar as you progress.
We need to set performance goals and financial goals. In my
opinion performance goals are more important than financial goals. I agree the
ultimate aim of every trader is to make money from the market, but focusing on
profitability alone will do more harm than good.
If our goal is to make Rs 5000/- a day, trading, it will
force us to trade incorrectly. We will lose patience and take mediocre trades
anxious to reach the set goals. Once we achieve the daily target, we may
hesitate to enter on good setups as we will be afraid to lose already earned profit and miss the
daily target. Daily financial goals are counter productive. Do not set daily
financial goals; you will be better with weekly or monthly goals.
Focus on performance goals on a day today basis. Our aim
should be to stick to the plan and focus on the process. Define the trading
process well and set goals to achieve consistency. Let the correct process allow
you to achieve your financial targets.
Nice post as always!
ReplyDeleteIn fact it is (goal setting) called SMART
Specific, Measurable, Achievable, Realistic, Time bound.
Good day ST,
@SS
ReplyDeleteYes Sir, Goals Should be SMART
Systematic,Meaningful,Accountable,Reasonable and Thoughtful
Thank you.
ST
ohh wow! Nice one!
ReplyDeleteThanks!