How to Set Attainable Trading Goals

It’s that time of year again! The time of year where everyone feels motivated to make “new year, new me” their life motto only to end up not doing things much different than the year before.

New Years Resolutions are the perfect example to show you how motivation means nothing when it comes to reaching your goals. Did you know that 43% of people EXPECT to give up on their resolutions by February? So why do they even make them? Because the idea of changing your life for the better gives people hope.

The reason people fail to stick to these goals is that they are too vague and there is no plan in place. Think about it…what life-changing goals have you been able to accomplish without a plan set in place? You can’t just go into these changes unprepared and expect the results you want. It just doesn’t happen.

What are goals and why should I set them?

A goal is a desired outcome that you want to achieve to create positive change in your life. An old teacher once told me, “goals are just dreams with a deadline” and that stuck with me.

Goals have value to them and are poised to change your life in some sort of way. They are opportunities and need to be treated as such.

Why should you set goals? There are many reasons why you should, but the most important being it gives you a sense of direction. Setting a goal is like running a race. You have the path, now you need just need to run it!

Setting goals also helps to give you a better sense of control over your future. If you know what you are working towards, you are able to mold your lifestyle into a schedule most suitable to attain your goals.

Setting your overall goal you want to achieve

To set an overall goal, it needs to be one that is measurable and has an end date. To determine if your goal is measurable or not, it needs to be able to tell you the goal has been reached with a simple yes or no answer.

“I want to become a better trader” is a good ambition to have, but it is not a measurable goal. “I want to grow my account 25%” is a goal that, at the end of the year, you can say you did or did not reach that goal.

You also need to make sure you have a set time frame in which you want to reach this goal. This will help keep you on track.

For example, one of my overall goals for this year is, “I want to grow my trading account from $1,000 to $15,000 by December 31st, 2022.”

I am the marketing coordinator of Highstrike and am learning to trade since joining the team. I have been cautious with taking trades. I haven’t allowed myself more than $500 at a time to learn with. I’m finally building that account consistently and am ready to take the next step.

Is it a hefty goal? Yes. Can the results be measured by a simple yes or no? Also yes.

Setting up the action steps to achieve the goals you want

Remember how I said setting a goal is like a running a race? Well, the action steps are your checkpoints. These help keep you on track and motivated throughout the year.

As a therapist, I have always stressed to my clients that having smaller goals inside of a larger goal is crucial to determining if a person will actually reach that goal or not. Being able to check items off a list encourages the mind to want to keep going. These steps help to build consistency and discipline, which are the keys to success.

Having a larger goal with no action steps is just too overwhelming for the mind to comprehend and you are more like to give up before you even start.

We will use my goal of “I want to grow my trading account from $1,000 to $15,000 by December 31st, 2022” as an example to set action steps. For this goal, my action steps are:

1. Trade daily (if the set-ups meet the criteria) and make sure to cut losses short.

• Trading daily helps to build confidence and rid yourself of emotions while trading.
• Cutting losses short and sticking to the plan builds discipline.

2. Study price action more in-depth and learn how to trade without any other indicators.

• Having a study plan in place helps me to strategize what I need to continue focusing on to reach this goal.

3. Learn how to trade spreads to add a second source of trading style.

• I prefer trading options over shares. Those are very volatile and risky though. I would like to learn how to trade spreads to help develop a secondary trading technique when the market isn’t favorable for options.

In conclusion…

Going into the new year is a great time to start fresh and take advantage of new opportunities. No matter the dream, the only way to get there is by setting goals you can reach.

To do that you need to:

1. Have a goal that shows results
2. Make sure it is measurable and has an end date
3. Have at least 3 action steps per goal

If you set a goal that meets these criteria, you will be more likely to reach your goals and change your life for the better. What is something you want to change this year? Let us know below in the comments!