Do you want to win at trading? Of course you do! If you didn’t you wouldn’t be reading this article. Congratulations! By reading this article, you are taking a step in the right direction. And that first steps means that you’re one step closer to your goal of being a profitable and successful trader. Goal setting will make you profitable (If you do it).
The purpose of this email article is to help you begin the process that will enable you to achieve all your trading goals. You see one problem is that many traders treat trading like their everyday life and that means that they’re not setting goals. They’re just moving along andgoing with the flow. And just like in real life, if you don’t set goals you’ll never achieve them. So hopefully after reading this article, a light bulb goes off over your head and you’re saying “WOW that’s my problem; I don’t set goals”. Okay, so now that you’re at the realization that you’re never going to have success without goals and a plan I’m going to share with you four key steps that will have you trading at a higher level and making money in a short time frame.
Step 1 make the decision.
Every journey begins with a single step and the journey to becoming a profitable trader starts with the step of making the decision to set plans and goals. Even after reading this article many of you will say to yourself that setting out plans and goals is a good idea. Yet, despite thinking it’s a good idea, many of you still will not make the decision to do what’s necessary to make money in the markets by setting a plan and goals. It all starts with the decision that this time you’re going to change and you’re going to do what’s necessary to be successful. Once you make that decision then it’s time to go to the next step.
Step 2 set core values.
You wanted to be a trader for a reason right? That reason may be to make a lot of money. Perhaps it was so that you could spend more time with your family. Or maybe even the freedom that you could travel and work wherever you wanted in the world. Whatever it is that started you trading, it’s important that you set your core values when developing your strategy. When I set my strategy and planning for the year I always include my values first. My work life and my home life are not separated. I plan my whole life so that I can accomplish what I desire in my life. Now there are boundaries and separations between the two but many times we find ourselves living two lives: a work life and home life and sometimes those lives are working against each other. So when we’re planning our trading we must look at the big picture because we’re trading for a reason and we need to make sure that we don’t fall short of that. I have written an article on Linked in on how to create goals for your personal life as well.
Let me give you an example of the core values in my life which will help you structure your own core values. The first thing that’s important to me is my relationship with God and that I’m doing everything that is pleasing to Him. The next thing that is super important to me and I place an extremely high value on is my relationship with my wife and following that is a relationship with my children and that we are functioning at a high level as a family unit. Then from there the next important things to me are church and work. Other values in my life that are extremely important are:
- commitment to excellence
- commitment to providing value
- commitment to my customers
Now that I have all of my core values established and my priorities in focus, I can begin the next step.
Step 3: writing a vision narrative.
Before we can get to writing the actual plan and goals it’s important to have a vision narrative. A vision narrative is basically the same thing as a mission statement. It’s a written statement that explains where you want to go and what you want to do with your life. This statement will contain the core values embedded within it. That is why you needed to write your values first. So this article is about trading and how to help your trading but I’m going to share with you my vision narrative which contains an element in trading but it also contains my entire purpose. One important note about a vision narrative is that you can have one main narrative for your entire life and then smaller sub-statements for each other important area where you are trying to accomplish goals. So for example, I would have one about my personal life which would encompass my trading.
I want to serve God fully and improve my relationship with my wife and family while achieving profitability in my business and trading.
Now that I am done with step 3 I can begin to start the 4th and final step.
Step 4: Using SMART goals to ensure success.
SMART goals are goals that will help you achieve your vision narrative. These are specific goals that have a clear plan on how to achieve them.
The acronym smart stands for:
- S – specific
- M – measurable
- A – attainable
- R – relevant -
- T -a timeline
When you use smart goals with a clear plan and strategy, the likelihood that you achieve them is much stronger. It is reported that people that plan using goals are 3 times more likely to accomplish their goals.
I am going to show you right now how to plan a smart goal and the goal that I choose for this article is to follow my trade plan each day.
So the SMART goal that I have created for this is:
Specific: I will follow my trade plan every day by writing out each one of my trades and then at the end of the day review whether or not I followed that plan.
Measurable: When planning my goal I must have a way to measure the progress. So yes it will be measured by the review processes at the end of the day. I will keep a log as to whether or not I followed my plan or not.
Attainable: Is it so lofty that it would be impossible for me to do? No, I can easily follow my trade plan if I deal with it seriously and consistently.
Relevant: Does this goal fit in the with your core values and vision narrative? Yes, this goal is relevant because it helps me fulfill my vision of being a better trader and works to help me in the big picture of my life.
Timeline: What is my deadline to accomplish the goal? I will do this for 4 months then review and see if I was able to accomplish it. And then determine if I accomplished my goal of following my trading plan.
That was the example of a SMART goal that I have implemented to help me fulfill my vision narrative.
Now I do this in every area of my trading and in my life where I want to achieve things. I have a work and home life balance, but they are both included in my vision narrative because they are not separate. They are both part of my life. And I want to be successful at home and at work. I want to be in control and leading in every area of my life so that I can leave a lasting legacy.
In conclusion, if you apply these four steps in your life and in trading, 2015 can be the year that you start to win. Please share this with other traders that need to start setting goals for success. What are your trading goals for 2015, I would love to hear your comments.