Most traders will be setting monetary trading goals for 2021. To make $100,000. To make $200 a day. To become a millionaire.
All those goals are useless without process-based goals. Monetary goals fail to create the framework and routines needed to achieve them. Your process creates the PNL.
The trading goals below are all processed-based. These 7 trading goals are what you need to set to help you maximize your chances of hitting your monetary goals:
Master 1 Strategy/Setup
Learning more strategies doesn’t mean you will make money. Consistency in trading starts by focusing on one strategy and becoming an expert. Especially when you’re starting out.
One of the hardest parts about trading is sticking to your niche. There are 100’s of stocks moving every day. You’re probably in a chatroom or on Twitter seeing tickers spammed everywhere. The temptation to fuck around is enormous.
Stick to the strategy you know inside and out. Control your FOMO and remember: Consistency in trading results is found from narrowing your focus, not broadening.
Journal EVERY DAY
We are a broken record. But what isn’t measured, cannot be improved. This is the least fun part about trading. But it is the most important.
We see this with students all the time. They are great about journaling after a red day. But after a few green days, they get content. They stop journaling, and next thing they know, they’re back in a slump.
Be consistent. Journal no what is happening with your current trading form. You will be amazed what you learn about yourself, not just your trading. This is key for personal growth, not just your trading.
Stop Celebrating Winning Trades
One winning trade doesn’t mean you are a successful trader. Neither does one losing trade. So don’t get attached to the outcome of one trade. We are in this game for the long haul.
Celebrating winning trades will cause you to get overconfident, deviate from your edge, and start trading stocks you have no business trading.
Stop Despairing Over Losing Trades
Losing trades are apart of the game. You cannot be in a winning trade without risking the possibility of it being a loser. Every trade has the potential to go against you.
Once you accept this, a losing trade won’t phase you. If you can master your response to losing trades, you take a huge step towards becoming a consistently profitable trader.
The best traders I know stay in a neutral state throughout the trading day: No highs from winning trades, no lows from losers. Focus on your weekly and monthly PNL, not what happens just day by day.
Look at 500 Charts a Day
How bad do you want it. One of the best ways to refine your trading instincts.
When you look at charts look at the following:
- Trend (Bullish, Bearish, Sideways)
- Key resistance and support areas
- Volume pattern
- Weekly/Daily & intraday time frames. Big and small picture
Use & Stick to Your Stop Losses
Stop giving it a few more cents. Or in the other direction: Stop pre-maturely stopping out because you’re scared, the stock went a little bit against you. Define your stop BEFORE the trade, and stick to it.
Use hard stops. I’ve heard the excuse “I don’t want market makers to see where my stop is”. BS. No one on Wall Street cares about your 20 shares of $TSLA. The market makers are not going after you.
If you keep getting stopped out prematurely, widen your stops. Stop putting it on exact support and resistance levels. Give your trades room to work.
Have a Life Outside of Trading
Trading is an awesome job. But there is more to life than charts and screens. Grinding and working hard on your trading is important. But you can over-do it.
To keep your sanity and avoid burnout, take breaks. At 11AM when stocks get choppy take a break. Go for a walk, spend time with your family.
Take trading vacations too. Take a week or two off if the stress is really building up. The market isn’t going anywhere, there will always be opportunities.
Trading Goals Summary
Process, process, process. Develop a winning process, and stick to it.
A good analogy is going to the gym. Let’s say you want to lose 20 pounds. Setting the goal of losing 20 pounds is useless without defining a process-based goal to achieve it.
Instead set a goal to go to the gym 5 times a week, for 1 hour.
Define the exact exercises you will do. 30 minutes cardio? 30 minutes weights? Lunges? Squats?
Weight loss occurs because you stuck to the process. Not because you just set the goal to lose weight.
Set specific, processed-based goals. The results you seek will follow. Don’t hesitate to reach out to us if you need help defining your process-based trading goals.
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