What You Need To Know When Setting Your Trading And Investing Goals
"Is there a particularly good way to set your trading and investment goals?" For trading and indeed for all areas of your life, there are two crucial elements in goal setting and attainment. First the perceived difficulty of the goal and secondly how specifically you state the goal. These two elements will play a large part in determining whether you will achieve the goal.
If you set yourself a trading/investing goal which is difficult and specific you are more likely to heighten your performance to attain your goal.
In a trading example a goal to earn $50,000 next year through your trading activity is good. However, a goal to achieve, say $51,600 will likely produce better performance as it is perceived by your brain as more specific.
Setting easy goals is unlikely to raise your performance as if you set a difficult but specific goal. So if you believed that a trading goal to earn $51,600 is easily attainable for the year, and then maybe set it to a more challenging $72,400.
Don't be unrealistic though, as you are more likely to perform if you believe you can achieve your goal. Base your goal on your knowledge, training, skills and past experiences. If you know it can happen, that you can make it happen, then your performance can increase.
If you believe that achieving your goal is important you will be more committed to making it happen. If you can measure how you are progressing towards your goal, then you can measure how well you are performing. This serve to strengthen your commitment to attaining your goal and progress results.
You can measure your progress against your trading/investing goal simply by keeping a running tally of your earnings year to date. So when you are half way through the year and have an earning tally of $38,100 from your goal of $72,400 you know you are on track as you are over half way there.
Often when we start off in trading/investing we do not set goals. Often we're just happy to see ourselves make some money. This unfortunately is not specific or difficult - it is not going to challenge or focus your performance.
Think about your trading goals. Set yourself some specific, difficult and measurable trading goals and understand why you want to achieve them. Then start measuring your progress.
Kevin Hogan talks about "the least acceptable result" in his book "The Psychology of Persuasion". Your least acceptable result is often the true goal that people achieve from any activity - what is your trading/investing least acceptable result. Make your least acceptable result your goal and watch your trading/investing performance results. - 23310
If you set yourself a trading/investing goal which is difficult and specific you are more likely to heighten your performance to attain your goal.
In a trading example a goal to earn $50,000 next year through your trading activity is good. However, a goal to achieve, say $51,600 will likely produce better performance as it is perceived by your brain as more specific.
Setting easy goals is unlikely to raise your performance as if you set a difficult but specific goal. So if you believed that a trading goal to earn $51,600 is easily attainable for the year, and then maybe set it to a more challenging $72,400.
Don't be unrealistic though, as you are more likely to perform if you believe you can achieve your goal. Base your goal on your knowledge, training, skills and past experiences. If you know it can happen, that you can make it happen, then your performance can increase.
If you believe that achieving your goal is important you will be more committed to making it happen. If you can measure how you are progressing towards your goal, then you can measure how well you are performing. This serve to strengthen your commitment to attaining your goal and progress results.
You can measure your progress against your trading/investing goal simply by keeping a running tally of your earnings year to date. So when you are half way through the year and have an earning tally of $38,100 from your goal of $72,400 you know you are on track as you are over half way there.
Often when we start off in trading/investing we do not set goals. Often we're just happy to see ourselves make some money. This unfortunately is not specific or difficult - it is not going to challenge or focus your performance.
Think about your trading goals. Set yourself some specific, difficult and measurable trading goals and understand why you want to achieve them. Then start measuring your progress.
Kevin Hogan talks about "the least acceptable result" in his book "The Psychology of Persuasion". Your least acceptable result is often the true goal that people achieve from any activity - what is your trading/investing least acceptable result. Make your least acceptable result your goal and watch your trading/investing performance results. - 23310
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Looking to find the best share trading course, then visit Just Shares to find the best advice on how to trade shares and share trading education.
posted by Mr. Forex at
8:13 AM
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