Setting Your Trading And Investing Goals
What's the best way to go about setting your trading or investing goals? Well, as with most goal setting in your life it involves two important elements: perceived difficulty, and how specific you are in stating your goal. These two elements play an important part in attaining your goals.
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.
So with a trading/investing goal example to earn $50,000 for the year, a more difficult and specific goal may be $51,600. If your brain perceives $51,600 yearly earning as a more specific goal than $50,000 yearly earning then you are more likely to raise your performance to achieve your goal of $51,600.
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.
As you work towards achieving your goal, your belief in the importance of achieving your goal will make you more committed to your goal. As you assess your progress you will be reinforcing your commitment when seeing results. This will strengthen your performance to achieving your goal.
Seeing progress in share trading can be from something as straight forward as a running tally of your earnings year to date. You want to earn $72,400 from your trading this year. You see yourself at $38,100 in July and you know you are well on your way based upon simple arithmetic.
Most people who start trading shares or investing in shares do not have goals. When asked about what their trading goals are, they don't know and they don't worry about it. The most common response is "to make some money". This is neither specific nor difficult nor does it have a big "Why is this goal important" nor is it measurable.
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. - 23217
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.
So with a trading/investing goal example to earn $50,000 for the year, a more difficult and specific goal may be $51,600. If your brain perceives $51,600 yearly earning as a more specific goal than $50,000 yearly earning then you are more likely to raise your performance to achieve your goal of $51,600.
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.
As you work towards achieving your goal, your belief in the importance of achieving your goal will make you more committed to your goal. As you assess your progress you will be reinforcing your commitment when seeing results. This will strengthen your performance to achieving your goal.
Seeing progress in share trading can be from something as straight forward as a running tally of your earnings year to date. You want to earn $72,400 from your trading this year. You see yourself at $38,100 in July and you know you are well on your way based upon simple arithmetic.
Most people who start trading shares or investing in shares do not have goals. When asked about what their trading goals are, they don't know and they don't worry about it. The most common response is "to make some money". This is neither specific nor difficult nor does it have a big "Why is this goal important" nor is it measurable.
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. - 23217
About the Author:
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 X - Men @ 3:55 AM
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