If you want to be a successful trader, You need to have VISION on what you want to do and goal setting is the first thing traders should do. Unfortunately, many traders jump right into trading without giving the first thought to where they’d like their new found profession to take them.
As per my experience, 99% of traders never think about trading goals when it comes to trading. And in my opinion, attempting to profit from the markets without having clear goals in mind is like trying to steer a rudderless ship.
Clarifying your goals, so you can measure them, is the essential first step in developing an overall strategy.
So, what kind of goals do we set?
Below are few examples will help you in setting a proper Goals
Focus on the Process, Not the Results
Most of traders focus on Outcome Goals
Here are some examples of outcome goals:
1. Achieving 20 points a day;
2. Making 10,000 a week;
3. Generating an average win rate of 65 percent on your trades;
4. Making a certain number of winning trades a week;
5. Producing a profitability expectancy of xyz per trade;
All these are about results. While it is useful to maintain such metrics, turning measurements into goals has little value to the trader wishing to improve performance.
Professional Traders focus on Process Goals
A process goal is entirely within the trader’s control. It involves
1. Developing your knowledge,
2. Developing your skills,
3. Developing your abilities,
4. Not trade results or statistical outcomes.
A process goal helps you develop as a trader.
You see, when you direct your efforts toward perfecting the process, the profits will follow naturally. The key word is “naturally” because any forced effort with the sole purpose of making money will end badly.
So if you want the profits, focus on the process. Things like prudent risk management, robust technical analysis and patience that only allows for the taking of the most favorable trade setups are a great place to start.
These are the things that will turn your trading around. Just learning new strategies will not turn your trading profitable. If you stick to your trading plan and make Process goals where you want to improve your habits and develop a daily routine, the money will follow. If you focus on the money, it will never come.