Friday, June 10, 2011

Best Trading Secret – Write Goals On Paper

You can’t underestimate the benefits of diving into a market with a solid trading secret and trading plan. If you do everything just right, you never have to work for a boss again, curse at the traffic while driving to work or work eight hours a day. Before you start dreaming big though, take note that trading is not a picnic. It takes a great deal of time and effort to get things going. Hard work is what pays off.

You must have a strong motivation to succeed when you embark on a life of trading. There will be difficult times to go through when none of your trades seem to be working out. At times like these, you need to be able to draw strength from the strong commitment you have made to see this thing through.

The real trading secret is to have some clear goals about exactly what you want to achieve in a certain period of time. A mere decision to ‘achieve financial freedom’ is not going to cut it. You need to know why you want financial freedom. Is it to provide well for your family? Is it to be able to give generously to those less fortunate than yourself? Whatever the reason, it must provide you with a strong enough motivation to withstand the pressure to quit before you have given yourself a decent chance. Write down what your motivation is and keep it beside you as you go through the hard yards.

To illustrate how vital goals are, turn your sights to the majestic Petronas Towers of Malaysia. As you might already know, these once held the record of being the tallest of its kind in the world. The towers were only really able to get that recognition because its foundations ran 800 feet below. In the same way, if you want to rise and become the best trader in the block, you’ve got to make sure your foundations are deep and strong. You can’t become an outstanding trader without this.

Part of constructing a solid foundation is clearly putting your goals on paper and putting a deadline for achieving them. This is what you call quantifying your goals. You can for example specify that you need to gain enough profits to pay your mortgage in twelve years. You can even go for a more emotional goal such as being able to completely fund your kids’ college education by a certain year.

Be aware that this isn’t something that will come to you after attending some finance seminars or reading trading strategies. There’s a lot more involved here.

You need to be absolutely ready to move and just do. Take note though that this can mean initial losses even if you have the best stock broker in town. The truth is that 80% of investors lose cash at first. Don’t be discouraged though. This is a necessary phase for you to go through, an initiation of sorts if you must. All you really need to do to survive this stage is to keep motivated and to keep your goals in mind. This will help you learn from your losses and help you grow into a better trader through time.

So before you embark on your stock trading, you must promise to implement your top trading secret. Write down your goals and do some background reading. You will then be ready to begin the task of undertaking some serious trading.


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