Why Setting Trading And Investing Goals Can Improve Your Trading/Investing Performance
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.
If you set yourself a trading/investing goal which is difficult and specific you are more likely to heighten your performance to attain your goal.
Let's look at a trading example. Let's say our trading goal is to earn $50,000 next year from our trading activity. That's good but $51,600 will likely create better performance because the brain perceives it as more specific.
Setting easy goals is unlikely to raise your performance as if you set a difficult but specific goal. So if you believed that a trading goal to earn $51,600 is easily attainable for the year, and then maybe set it to a more challenging $72,400.
But your goal has to be realistic to be achievable. You need to believe your goal is attainable through your past experience, knowledge, training and/or skills that you can make it happen. So to perform against your goal make it realistic.
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.
You can measure your progress against your trading/investing goal simply by keeping a running tally of your earnings year to date. So when you are half way through the year and have an earning tally of $38,100 from your goal of $72,400 you know you are on track as you are over half way there.
Most people who start trading shares or investing in shares do not have goals. When asked about what their trading goals are, they don't know and they don't worry about it. The most common response is "to make some money". This is neither specific nor difficult nor does it have a big "Why is this goal important" nor is it measurable.
Start by setting a difficult, specific, and realistic trading/investing goal and start measuring your progress. But make sure you understand why you want to achieve your goal; you need to know why it is important for you to achieve your goal.
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. - 23226
If you set yourself a trading/investing goal which is difficult and specific you are more likely to heighten your performance to attain your goal.
Let's look at a trading example. Let's say our trading goal is to earn $50,000 next year from our trading activity. That's good but $51,600 will likely create better performance because the brain perceives it as more specific.
Setting easy goals is unlikely to raise your performance as if you set a difficult but specific goal. So if you believed that a trading goal to earn $51,600 is easily attainable for the year, and then maybe set it to a more challenging $72,400.
But your goal has to be realistic to be achievable. You need to believe your goal is attainable through your past experience, knowledge, training and/or skills that you can make it happen. So to perform against your goal make it realistic.
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.
You can measure your progress against your trading/investing goal simply by keeping a running tally of your earnings year to date. So when you are half way through the year and have an earning tally of $38,100 from your goal of $72,400 you know you are on track as you are over half way there.
Most people who start trading shares or investing in shares do not have goals. When asked about what their trading goals are, they don't know and they don't worry about it. The most common response is "to make some money". This is neither specific nor difficult nor does it have a big "Why is this goal important" nor is it measurable.
Start by setting a difficult, specific, and realistic trading/investing goal and start measuring your progress. But make sure you understand why you want to achieve your goal; you need to know why it is important for you to achieve your goal.
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. - 23226
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 @ 10:38 AM
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