“Huh, maybe I should trade today” – said no smart stock trader ever.
The successful names who have managed to build a high-worth portfolio, they aren’t impulsive traders. They don’t trade when they ‘feel like it’. They don’t just wake up in the morning, go through the charts, and decide they are going to trade today.
Successful stock trading is all about working along the lines of a well-thought plan to reach a well-defined goal. The top market players know this well. And if you are to be one of them, it’s essential that you understand this basic fact as well.
You need clear (short-term and long-term) goals to become a profitable stock trader and build the desired portfolio.
Of course, outlining goals is a challenge in itself.
While a good online trading course will offer you the right insights and tools to plan your trades with clear objectives, it is only going to prepare you on the technical front.
A smart goal-setting is about acting opportunistically to make the most of the existing trends. It’s about leveraging your personal experience and intuitions to steer your short-term goals. It’s about a holistic approach that undertakes the market sentiments, which the charts and metrics overlook at times.
How, you ask?
You can look at the top traders and learn from their habits, ways of thinking and approach.
To make it easier for you…
Here are three (very) important things you can learn about setting stock trading goals from successful traders:
1. Be as realistic as possible
The stock market isn’t the right place to confuse delusion with optimism. You must loosen your grip for optimism and lean a lot more towards the realistic picture.
No matter how good you are or how favorable the market conditions are, you can’t make a million from stock trading in a week. You cannot build a high-value portfolio in a month.
This isn’t skepticism or a negative attitude. It’s about being more realistic. And it is something that the new stock traders, in particular, can do a lot with. They need to have realistic goals. This is why thinking long-term is very important.
Outline goals that are achievable.
Have small goals that act as milestones; keep them in sync with the market’s current movements and trends.
Have a long-term goal; like, how do you want your portfolio to be in 10 or 20 years? And then keep your pace and small milestones always in conjunction with this big goal.
The more realistic your goals are, the better it would be for your portfolio.
2. Could you be more definite?
“I want to be a rich stock trader” – and you never will. Not at least for a foreseeable future.
Becoming a successful stock trader is not an event; it’s a process. And this process will only come into being if you’re definite about the path and directions that you must be taking.
In short, it means that your goals must be definite. They must answer not only your “what should I do next” but also “why I should do it”.
Remember, you will end up nowhere if you’re not sure where you’re going.
So, be as definite in small and long-term goals as you can. It increases the likelihood of you winning.
Don’t just say “I want to be a millionaire” – write down the exact number you want in a year and 10 years from now.
Vagueness kills the potential of so many stock traders. Because most of the time they don’t even know what they should be doing. And in that case, they either make a wrong decision or simply don’t act at all. Don’t be one of them!
3. Be really good at stock trading
You set a goal and you failed at it.
Guess what you will do the next time?
You will likely set a relatively smaller goal. And if you fail even at that, your subsequent goals would be even smaller.
In reality, effective goal setting is about growth. Your goal must facilitate your progress; it must help you get better; it must inspire you to improve.
This is where being really good at stock trading comes to play.
If you’re making successful trades and reaching your small milestones, you would reach your bigger goal much more efficiently and quickly. Your small wins would inspire you towards your biggest win that you’re aiming for. They will provide you with the needed confidence.
So, while in the first instance this might not look like it, a large part of setting stock trading goals is about being good at the game.
The better the stock trader you are, the better the goals you will create (and achieve).
So, invest in your technical skills. Learn the advanced concepts like RSI compression, time frame confluence, multi-time frame analysis, RSI flare zones and more. Understand your unique needs and opt for the right options trading course India or any other online trading course that would add to your skills and make you a better stock trader.
Give this a read: A 2020 Guide On How to Become a Stock Trader
These are three very important things you can learn about setting stock trading goals from successful traders.
Of course, when they do set goals, they consider a plethora of other factors and nuances. But for the starters, the above three are the most fundamental ones that, in particular, the new stock traders must focus on a lot to get the start on the right track.