If you want to succeed at trading stocks, options, futures or Forex you need a goal first and foremost. Then you need to devise a plan that will get you to your goal. The point is that your approach will be different if you are working towards retirement versus trying to earn $10,000 in the next couple of months. What is your trading goal? Of all places the Huffington Post published an article by a successful young stock trader who mentions having a goal among his stock trading lessons.
Have Goals for Yourself
If you want to stay motivated and keep making money in trading, no matter how much you want to make, it is essential that you have goals. For Connor, these goals are to earn $500,000 in profits and to have his first student (Connor is now teaching others), become a millionaire subscriber. Even if your goal is to make $1,000, you need to have a goal so you have something to work towards and a marker you can celebrate once you reach that goal.
You may not be in the league with traders who earn half a million in profits but if that is your goal you can plan accordingly.
Time, Attention and Investment
If your trading goal is to add a little extra income every now and then you can be a part time stock or options trader, trade currencies or dabble in futures. You will only make trades that you consider to be no-brainers. Then you can bank your money, use it for larger trades or take a nice vacation and buy a newer car. But, if your aim is to make $10,000 a month or build your trading account to $500,000 you need to spend more time on the job, polish up your trading skills, consider working with a coach to become more accomplished and invest in a higher tech trade station, software and internet connection. If you are going to trade currencies on the London or Tokyo markets you will need to work evening or nighttime hours and arrange your life to match. It all comes from what your trading goal is. After that it is all stock trading for dummies 1, 2 and 3.
Conservative versus Aggressive Trading
Is it your trading goal to steadily increase your profits and trading capital carefully managing risk along the way? Or is to go all out in search of profits accepting the risk that you could lose all of your profits from the last two years in a couple of badly managed trades? Are you trading because you love to do it? Benzinga talks about setting trading goals.
Every day as you sit at your computer, whether it is for a few minutes before or after work, or you are able to trade all day, you may have wondered why you are trading. Have you ever determined what your goals are for trading? Not just the “I want to make money” reason, but also the deep reasons you are trading. Are you doing it because you love it? Are you hoping to get out of a job you dislike and work your own hours at home? Do you want more time with your family?
All of these are valid reasons that can motivate you to become the best trader you can become. However, it is important to have set some goals for trading. Goals motivate you to continue to move forward.
Stock traders are independent business people. As a trader you can set your own hours and arrange you work and your life in pursuit of your goals. Decide what your goals are first of all and the rest will follow.