Wanting to be Rich isn’t a goal; Making 1 million dollars in 3 -10 years is.
One of the most important aspects of trading is defining what you want.
Theodore Roosevelt (26th President of the United State) once quoted: If you know what you want and you believe you can, you’re halfway there.
Our goal at Global Institute of Trading is to give hope to struggling traders and to bring you the best financial reports and information about what the big players are doing. Our blog information is more than just that, we want to create a close relationship between our readers making them aware of the unknown in the trading space.
In this article, we’re bringing you the wonders setting SMART goals does to a trader and his/her system.
1. What are smart goals?
2. How to set SMART Trading Goals
3. How setting realistic goals can set you up for success as a trader
4. What type of Goals are we talking about?
5. Facts and Myths about setting Trading Goals
“And, when you want something, all the universe conspires in helping you to achieve it.” – Paulo Coelho, Novel: The Alchemist
Oftentimes, When new Traders discover trading for the first time, maybe they accidentally came across it on the internet or heard about it from a friend or they saw a guru on Instagram making thousands of dollars in a day and that creates an impression of instant gratification, such mindset could, unfortunately, lead a new trader astray.
What happens next? They then go on in search of knowledge on how to make their piece of the 6 trillion dollars daily volume in the forex market, but remember, with a subconscious mind being fed with instant gratification, they had probably read a few books or bought a course from a guru and they go live after 3 months, intending to become a millionaire overnight. Which is far from possible
This type of cycle is what brings about the statement released by brokers which were published in the previous article where I wrote about risk Management. “90% of new traders lose 90% of their trading capital within 90 days of going live ”. Check here for the article.
Abraham Lincoln once said, “If I had 8 hours to chop down a tree, I would spend the first 6 sharpening my axe.”
I’m a big fan and a big believer of this philosophy. Take a minute and reflect on everything in life, you would agree Proper Preparation Prevents Poor Performance.
You have to know what you want, how you want to get what you want, prepare for what you want, and then go for it.
Ultimate Preparation is one of the most important elements of achieving success in the financial market.
When you have a great trading plan you’re halfway to achieving consistency. And I believe consistency automatically equals success in trading.
A consistent Trader is always unstoppable!
Specific: Well defined, clear, and unambiguous.
For example, rather than saying “I want to be a rich trader in 6 six months”, you could say “I want to make between 2-3 % profit monthly for the next 6 months.
Measurable: With specific criteria that measure your progress toward the accomplishment of the goal.
Achievable: Goals that are attainable and not impossible to achieve
Realistic: Within reach, realistic, and relevant to your life purpose
Time-Bound: With a clearly defined timeline, including a starting date and a target date. The purpose is to create urgency.
Quick Note: As a trader, we need to be careful with creating a time limit for achieving a particular goal in trading. If care is not taken it could lead to costly errors in execution.
A. Have a Why!
Why do you want to be a trader?
This is a really short but big question that needs a detailed answer.
Your why will keep you going during tough times. The harsh truth is Trading is one of the most challenging journeys anyone could ever decide to embark on.
Human beings possess certain characteristics and beliefs that make trading difficult. Those beliefs need to be neutralized in other to achieve success in trading. An example is being disciplined and following simple rules religiously without deviation. As simple as it sounds. The human brain is programmed differently. Your job as a trader wanting to be successful is to rewire your brain. In our subsequent post, we would discuss more on TRADING PSYCHOLOGY.
Successful traders have gone past this level. They were once there, they made mistakes upon mistakes and then finally learn how to rewire their brain to function well in the market space.
So having a Big Why will help you keep going whenever you contemplate giving up.
But remember, if you can survive the trading learning curve. You’ll be unstoppable
B. Write Down Your Goals!!!
A Study by Harvard Business Graduates found that the 3% of graduates from their MBA who had their goals written down, ended up earning ten times as much as the other 97% put together.
This Is what a written realistic goal looks like:
I want to make 2% monthly for the next 12 months
I will follow my trading plan every single day
I want to trade x market or x pairs
I have chosen to be either a Day trader, or Swing trader or Position trader
I will invest a portion of my trading profits after every withdrawal, etc
Realities of Setting Trading Goals
One of the things that makes it difficult for new traders to become successful in trading is having Unrealistic Expectations.
You’re not going to be rich in 3 months. Sounds harsh? I don’t think so. The earlier you separate the lies from facts in this space the better for you.
You are definitely going to have losing days, losing weeks, Losing months, rarely a losing year. These are normal occurrences. You can’t escape losing.
It’s important to make you understand the fact that setting smart goals won’t eliminate your losses. It’s basically going to help you separate what’s important from what’s not.
This happens to successful traders. They lose money probably even more than you do. But because they’ve got an edge, the probability would always play out in their favor in the long run
In 12 trading months. Only 7-8 months might be the dictator of your results for the whole year. The rest of the months might be negative or break even. Have that at the back of your mind.
Always be careful when setting Goals, put in the work and stay patient your time will come.
Now, go set some SMART goals and set yourself up for success.
Kindly share if you find this article helpful.
Want more daily market reports directly from large Institutions themselves? Sign up for our 7-day free trial. You will receive 10-20 reports each day directly from Institutions such as Goldman Sachs, Credit Suisse, Westpac, ING, Credit Agricole, and more! Click here
When we say we want to lower the price that people pay to trade forex, we mean it. That’s why we offer a commission rate that is on average 36% cheaper* than our closest competitors. Most brokers charge $5-$10 per trade for US Share CFDs. True to our mission, we’re charging $0 brokerage fees.
Check out Fusion markets! Click Here