What You Need To Know When 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.
The more difficult a goal is to achieve and the more specific the goal is, the more likely you are to raise your performance level to achieve the goal. Now, this doesn't mean that you will automatically achieve the goal because it is difficult and specific, it means that with these two elements in place you are more likely to produce high performance which in turn will produce the best overall results.
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 difficult and specific goals provide a better outcome than setting goals you know are easily attainable. So, if you believe that you can comfortably achieve $51,600 through your trading, then raise the level to something more challenging like $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.
If you believe that achieving your goal is important you will be more committed to making it happen. If you can measure how you are progressing towards your goal, then you can measure how well you are performing. This serve to strengthen your commitment to attaining your goal and progress results.
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.
Often when we start off in trading/investing we do not set goals. Often we're just happy to see ourselves make some money. This unfortunately is not specific or difficult - it is not going to challenge or focus your performance.
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 discusses in his textbook "The Psychology of Persuasion", the idea of "the least acceptable result" and how this is the goal that most people will achieve from any activity. What is your trading or investing least acceptable result? Don't let this be your goal, set your trading/investing goal today and raise your performance and watch the results. - 23159
The more difficult a goal is to achieve and the more specific the goal is, the more likely you are to raise your performance level to achieve the goal. Now, this doesn't mean that you will automatically achieve the goal because it is difficult and specific, it means that with these two elements in place you are more likely to produce high performance which in turn will produce the best overall results.
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 difficult and specific goals provide a better outcome than setting goals you know are easily attainable. So, if you believe that you can comfortably achieve $51,600 through your trading, then raise the level to something more challenging like $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.
If you believe that achieving your goal is important you will be more committed to making it happen. If you can measure how you are progressing towards your goal, then you can measure how well you are performing. This serve to strengthen your commitment to attaining your goal and progress results.
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.
Often when we start off in trading/investing we do not set goals. Often we're just happy to see ourselves make some money. This unfortunately is not specific or difficult - it is not going to challenge or focus your performance.
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 discusses in his textbook "The Psychology of Persuasion", the idea of "the least acceptable result" and how this is the goal that most people will achieve from any activity. What is your trading or investing least acceptable result? Don't let this be your goal, set your trading/investing goal today and raise your performance and watch the results. - 23159
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 @ 3:52 AM
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