Excerpt from the book “Trading for Dummies: (Part 2)”
Determining the goal is an important skill you need for your trading:
Embedding predetermined goals; it’s one of the initial actions of all successful traders. People perform at their best when they’ve clearly defined their goals beforehand and set them vividly in their minds. It’s a way of directing mental activities.
When we vividly visualize our goals in our minds, our subconscious mind also begins to work hard and greatly assists us in achieving our goals. By doing this, we automatically place it on the desired path without facing mental challenges and pressure on our will.
In addition to vividly visualizing goals in your mind, you should also consider three other aspects:
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 abilities should also be considered in your goal. Of course, this goal could be set to achieve one million dollars within a year, but this is likely to be unrealistic because it’s currently beyond your capabilities.
Your goal must be attainable:
This condition is also necessary, just like the previous one. Again, I must emphasize that your goal must be within your capabilities. In this regard, an example can be given that if your attempt is to average a profit of 250 to 500 dollars per day, your chances of achieving this goal are much higher than achieving one million dollars in the first stages of your trading.
Don’t misunderstand the point because if your performance towards your goal is very good, there’s no reason you can’t improve it. However, you should definitely start with an achievable goal and then build on it. It is strongly recommended to start with a small goal and then upgrade it.
Your goal must be measurable:
The goal must be measurable. You should be able to know when you’ve deviated from your goal, exit, and be aware of when you’ve reached your interim goals.
If the goal is not measurable, you’ll be lost as to what situation you’re in now, and if your situation isn’t good, you won’t know how to change course towards the goal.