Lessons about investing
SETTING AND ACCOMPLISHING REALISTIC GOALS
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.
But there is one big catch. You may have a goal clearly in mind, but it 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 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 $250- $500 a day with your trading from off-the-floor.
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.
“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!”
🔺LEARNING TO LOVE TO TAKE A LOSS.🔻
This is something you’ll hear successful traders say all the time. If you’re going to be a successful trader, you will have to learn to love taking a loss.
Basically, what that means is it does not bother you to have a losing trade.
Don’t get me wrong, you’re not going to be happy to have a losing trade, but you should be happy to be out of the market when the trade no longer represents a profitable opportunity.
Most people who learn this do it the hard way.
They end up losing all their money before they realize how important it is to love taking a loss. Instead of ignoring the fact that they have a losing trade (like most people do), successful traders confront the possibility of being wrong, and thus, when the time comes to take a loss, they do it without hesitation.
Your losing trades do not diminish you as a person. You are not your losing trades. You are also not winning your trades either. They are simply by-products of the business that you’re in.
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