We are nearing the end of 2009 and it is a time to set goals again. I remember I read somewhere that by setting goals, you put yourself in the top 10% among people. And by taking action towards your goals, you are in the top 1%. I used to think setting goals is futile and not helpful at all. If you do not find it helpful too, it is likely that the goals are not inspiring to you. To me, goals are sources of inspirations and are are supposed to give you the drive to work towards them. If this is the case, how do you set inspiring goals? The key is to find out what you really want. You will be surprised that most people do not know what they really want (Napoleon Hill says a good 95% of the people) and they do not bother to find out. Setting goals forces you to calm yourself and clear away the day to day distractions, and make you really focus on yourself and think about the future. You gain the clarity once the mist is gone, which you start to think and feel what are the thoughts that resonate in you most. Explore in these directions and eventually convert them to quantifiable goals. Try it! This alone puts you in the top 10%!
It has been quite a journey so far and it is only a year plus that I started trading. I intend to review my performance for this year in a separate post after 2009 draws to an end. Here, I will only share the goals I have set for trading in 2010.
Trading Goals 2010:
1) I am making an average profit of S$2,000 per month from trading stocks.
2) I am making an average profit of S$200 per month from trading FOREX.
My actions to achieve the ultimate goals:
a) Attending mentor session once every week until I fulfil goal no. 1
b) Reporting my trades to teacher until I fulfil goal no. 2
c) Recording and tracking the details of every trade that is made. Identifying my mistakes during post trade reviews
d) Sharing my trading results and knowledge to people by writing minimally 3 posts per week on BigFatPurse
The reason why the goal for FOREX is $200 while stock’s is $2,000 is due to my experience in FOREX is much lesser and hence, I am only willing to risk a small capital to trade FOREX. Hence, do not be mistaken that I am trying to imply FOREX is less profitable.
Initially while making my trading goals, I actually contemplated to pen down “mastering my stock and forex trading systems” but then I ask myself, “what is the point of mastering trading systems? It’s to make profits!” With that in mind, I immediately realised that mastering trading systems is just the means and ultimately, it is the profits that what I am looking for. If I am able to profit consistently from the market, that means I am trading right with the system. Thus, by quantifying the amount of profit, I have a more concrete goal to work towards to. My point is that it is important for all of us to separate the means and ends when we are setting goals. Set the destinations as goals, or simply put, the “what”, and not the “how”.
By stating the goals public, and put myself on the line. I am actually leveraging on you guys :) I have goals in other area of my life but I feel it will only be relevant to share the financial part of it to you. I really urge you to set goals for yourself if you have yet to do so.
Thanks for the support so far. The review on trading results for Dec 09 as well as for the year 2009 (audit time!) will be posted on the first day of new year. Hope you will visit BigFatPurse again and I wish you a Happy New Year!
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Just to about setting trading goals…monthly would be good enough. Pls don’t set weekly, or even daily goals because it’ll cause you to trade lousy signals or when there is no trades to be made at all.
Short-terminism on a long term goal, be mindful of it :) Gd luck!
Ya, I agree with you La papillion. Trading is dependent on what the market is willing to give you and is never consistent. That is why I set as “average” profits per month. Happy New Year to you!
Thanks for your willingness to share your trading info with us. Indeed, greatly appreciated with what u have done so far. The trading journey is tough BUT the tough keep u going…………………..to 2010. U really practice the cut loss rule which is very good.
Regards.
Thanks Edward. I hope to post more profits and inspire you guys!
Hi Alvin, thanks for your sharing your results and target. I too have been trading using the T3B system and so far it is working well for me. But maybe I shouldn’t say so far cause for the most part the STI was rallying. I think more important gauge is to see if your trading performance is better then market. if the market is down 20% and your portfolio is only down 10% you are still a winner! :) That says a lot on your trading process. For me it is still a long way to go to master. I dont think I can have +ve trade of $2000 per month on average. How much trading capital do you need to at least have a shot at getting $2K per month?
Hello Roland! It’s great that the system works for you! I must admit it is a stretch goal for me. But by defining the why and what are more important than finding out the how. My point is that I have a strong reason and desire to start growing a passive income, and I set it to be S$2,000 first. I am also not certain if I can make it but I am willing to try. On the other hand, if I am certain about achieving it, then why bother setting it as a goal?
If you focus on the how, you will be very discouraged. For examples, “I will need a big capital”. “Trading income is never consistent as it depends on market condition”.
If someone is always worrying about the how, it is likely the person will not begin working towards a goal he/she actually wants. Hence, worrying about why you would want $2k/month? If you have a strong reason, you will find the how. As the saying goes, “there’s a will, there’s a way”.
Thanks for sharing. You mentioned that you will be “Attending mentor session once every week”, where can one find out about such mentor session?
It is actually a closed mentor session, which is only opened to T3B students.
alvin, if you want encouragement i have none so far. and please don’t read on..
the only good trader i know are the one that they can rely on themselves and not others.
the only good teacher i know of is the market (plus time) itself.
to set a goal in trading is not to set it in monetary (winnings) form, like i said, you will be out of business.
the goal has to be related to oneself progress, the understanding of ourselves and of the market.
Have you thought of money flow? Risk Adverse or correlation? Like S&P500 & DOW have anti correlation with USDX and Oil?
Or the Bond market have inter relationship with the DOW/S&P500?