New Year New Life: Goals to set your Trading journey to a successful 2018 start
We are saying good bye to 2017 and some of you are celebrating your accomplishments while others are reviewing their progress and some are wondering if they can bring their A game to their Trading accounts. Wherever you are I can assure you that you are not alone in that situation and like thousands of traders over the ages you also have the potential to succeed in creating an income out of trading that is sure to create a higher level of confidence within yourself. Let us look at the steps you need to take to set forth this journey and set the game plan right from day 1.
Decide to make Trading success a MUST not a should!
(1st January 2018 here we come as a Team!)
Step 1: Write out a brief plan with easy to follow daily action
- A simple description of what you want to achieve in 12 months.
- Now divide your goals in 4 quarters, January-March, April-June, July-September, October-December.
- Your trading plan needs to be simple. Apply the KISS formula (Keep it simple & short). This is a well renowned formula that simply states that plans when kept simple are easily executed and achieve the best results. In an article on Investopedia, Ian Harvey states that “A KISS trader, therefore, applies the KISS principle to the world of trading and investing. Complicated trading strategies and technical analysis, although sometimes psychologically appealing, can be very counterproductive to the bottom line. As in most things in life, simple is truly better when it comes to trading strategies.”
- I noticed during my teaching newbies that the new traders were diligent in applying basic rules and techniques and hence executed perfectly each trade without any expectation of loss or gain and more often experienced high success in the beginning of their trading journey than few months down the track. I put this shift to people gathering information from all sort of places and just being in a hurry to follow some holy grail that will make money in every trade. KISS Keeping it simple short example for a new trader could be
- Trade with the trend
- Make sure there are 2 cycles in the direction of the trend
- Follow the market flow
- Best Price action for a precise entry
- Add 1 extra indicator to confirm the entry eg MACD or Stochastic or RSI etc
- An example of a complicated system will be
- Trade with the trend
- Follow 2 cycles
- Trade phase 1 but also take some reversal trades
- Combine more indicators to make sure I get it right
- Add MACD, stochastic, RSI, Fib lines, Gant analysis and Bollinger bands. Just add all that I can possibly add on the chart.
- Read news articles
- Read technical analysis & opinions on atleast 3 social trading websites
- Scale in and out
- Blah blah blah
As you can see this list will only grow and not necessarily achieve results. Please note that I am not saying that follow just a 5-step process, that is just one example but you get the gist, right? A professional trader is always building her knowledge and testing new strategies and testing different time frames to suit his/her personality and lifestyle. By no means you need to have a tunnel vision.
Our trading plan needs to be simple so we find it easy and fun to execute on a daily basis.
Step 2: Make a list of benefits and rewards you will achieve as a result of getting these results in each quarter
- This could be an instant increase in your self-confidence or an increased desire to be more disciplined
- More time to spend with your family
- More money to enjoy time with loved ones
- An ability to apply invest money for a securer future etc etc
What we think about we bring about. Our unconscious mind is responsible for 90% of our decisions and hence actions while the conscious brain is merely 10%. Cognitive neuroscientists have conducted numerous studies showing that our actions, behaviours, decisions are based on a pre-conditioned response, and we are mostly unaware of why we do what we do. This 90% part of our brain activity is based on past conditioning and all we hear and see from the day we are born (as early as mother’s womb). Our memories aware or unaware play a role in creating results in our life.
To achieve the best result from your unconscious mind it is important that you start with your conscious mind and become aware of all you say and do (hence your action plan list!). What you say to yourself is important. Create affirmations that support your desired outcome and that strengthen the belief in yourself. Make use of personal development books and audio or workshops to go to the next level. NLP (Neuro Linguistic Programming) can support you in changing some of your beliefs that no longer support your financial success and total fulfilment in all areas of your life. As much as you work on your trading you need to work on your inner development.
Step 3: Make a list of Obstacles and ask yourself ‘what could possibly stop me from achieving my planned goal?”
- Lack of knowledge
- Not enough time
- Other commitments
- Blah blah (make sure you don’t just write blah blah, actually spell it out. Be honest here, this is your plan & your life, pay attention!)
Step 4: Identify the People who can help you
- Are there people around you who share the same passion and are totally committed to succeed? Go find them and enroll them in a common vision
- Meet others who have skills and knowledge that you want and list your skills that you can share with others. Make it a win-win and fun way to work together. Don’t be afraid to ask for help.
Step 5: Detail of each action step must be listed (make it easy!)
- Action step is a specific executable step that will help you get closer to your goal. Write each step in such a way that you know exactly how to execute it.
- There are examples given above or simply make an appointment with your Mentor and ask them to help you create your plan. Remember to make all your results measurable because whatever you can measure you can improve.
Step 6: Set a Deadline. A goal without a deadline is just a dream post. Although I am all for dreaming big and creating your dream boards, I am also about you achieving those dreams & enjoying the benefits of my labour! Set milestones that you look forward to achieve. This step seems to be ignored by many. I have been a victim of setting lose deadlines recently on a home project I wanted to complete. Now that it is the year end I realized that it is still sitting their ‘untouched!’ (hmmmm and the worst part is that it wasn’t even a difficult project!) I am sure you can relate to my situation. If you don’t set each milestone a FIRM deadline you will more than likely procrastinate and another year will go by without getting what you wanted from this journey.
Step 7: Be Detached from the outcome
- Yes I know what you are thinking. ‘Saira you are contradicting yourself’! Well I am not. Here is what I mean by being detached from the outcome.
- You are not thinking 24/7 about all the money you will make from trading.
- Instead you are busy just following the action steps daily
- Instead of day dreaming you actively review your progress because the steps you have outlined in your plan are measurable. You know exactly what you needed to do and then you just did it. You reviewed your progress regularly with your coach.
- You knew your ‘WHY’ ie why you are doing what you are doing. You knew ‘WHAT’ to do & you found people to do it with & you learned ‘HOW’ to perform each step from a professional who knew what they were doing rather than randomly visiting amateurs!
- You took responsibility!
- You chose to respond rather than react!
You deserve to enjoy the fruits of your labour! Trading is a serious business with a potential to create regular cashflow and support your lifestyle when done properly. The great thing about actionable goals is that there is an end in sight. Set a deadline based on your plan of action and list of obstacles and knowledge required. Join a group of committed people who can hold you to a higher standard. Get ready to play the money game.
I wish you & your loved ones all the best in 2018. I am looking forward to see you at one of our events and create magic using mind power.
To your prosperity,
Psychology of Trading Specialist