I got a question and I think you experienced people can help me.
How to set realistic goals and measure success in trading?
If it’s achievable, it’s realistic, meanwhile there’re also ways in meeting unrealistic goals which when met makes you a standout.
So, to set realistic goals, be real with the plans; and when your plans are real but feel reluctant doing them, apply the 5 seconds rule.
The 5 Seconds Rule, whenever you feel like doing something, count 5,4,3,2,1 then do it. Never think it twice, cause when you do, your brain becomes involve and when it does, the brain has a thousand reason for us not to do a thing.
Like, it’s 4am as the alarm sounds, but rather than getting up, the brain comes up with isn’t it too early getting up by 4?, i can just get a 30min nap so my body get them shits together…; so many excuses.
As to success, for me, success has no specific measurement. But let me share a piece with you,
The Four Stages of a Trader:
1. Unconscious Incompetence: The new trader doesn’t understand or know how to trade and does not necessarily recognize their ignorance. They may not even know what skills are required. The individual must recognize their own competence, and then know what skills are required and the value of the new skills, before moving on to the next stage. The length of time an individual spends in this stage depends on their passion to learn and commit.
2. Conscious Incompetence: Though the individual does not understand or know how to trade, they recognize the problem, as well as the value of the right new skills in addressing the weaknesses. Learning lessons from losing money can be integral to the learning process at this stage.
3. Conscious Competence: The individual understands or know how to trade a system with an edge.
However, demonstrating the skill or knowledge requires discipline and perseverance. It may be broken down into steps in a trading plan, and there is heavy conscious involvement in executing trades with the right signals and position sizing.
4. Unconscious Competence: The individual has had so much practice executing trades within their system that it has become “second nature” and can be done consistently. As a result, the trading skills can be performed mechanically and automatically. The trader may be able to teach it to others as they are now an expert.
Final: You can measure your progress by knowing which trader you are.
@NatureGirl i think this piece will be important for you.
I like the way the advice here is to focus on process, the numerous small tactics and actions which the trader can control, and not profits in millions of dollars.
First of all, thank you for sharing all of that.
and I agree, it is better to have a self-awareness, which includes knowing both good and bad in yourself, is necessary.
Love the very detailed explanation! Definitely agree with these points.
It’s amazing how just counting down from 5 can help us overcome our hesitation and take action. Thanks for sharing your insights and the four stages of a trader.
Ofc i have seen the 5 seconds rule helped me in areas i had struggled with problem of procastination. Thanks for your kind reply.
Story of my life.
How do you set goals in your real life? Just bring it to Forex as well!
If you sleep at 5 am, absolutely you cant fix it in 1 day, you need to fix it maybe in 10 days!
Do it in forex too, Try to make better percentages every month!
If it is -10% now, make it -6% next month and like that!
Avoid setting dreamy Goals!
Also for your personalities, do the same! If you overtrade (for example you want to trade 1 in a day but you make 10) just bring it to 9, remember that It’s not what we do occasionally that shapes our lives. It’s what we do consistently., by Robbins!
yeah it was and thank you so much for this information all new traders really need such information and inspiration.
First of all, thank you for sharing these wise words. but you know it’s easier said than done. I know making dreamy goals will ruin everything and I want to set realistic goals. maybe the better question is: what are the criteria for realistic goals?
Well, that is a good question now! I am going to talk about how I set realistic goals.
- I set goals that I believe are within my capabilities and resources. I can’t set a goal of reading a book in one day. “I” can’t do it. Maybe you can think about your own capabilities.
- Flexible one: Just set breaks in your goals, consider the fact that you are a human and you might be depressed or, for any reason, not be in the mode of doing the goal that you want to do, and do not put pressure on yourself.
- Set specific times, be careful about your working hours and the time that you need to sleep, eat, or do other activities, and do not expect yourself to devote all of yourself to just one goal.
- Avoid setting dreamy goals, as I mentioned earlier.
That’s what I could tell you.
It’s nice to see you people active here. Did you find the goal? And the parameters of measuring success! If yes, then please mention them.
That is completely correct. Setting a realistic goal require a realistic understanding of yourself and your capabilities.
Well, each person goals and parameters are unique. You should seek yours. but what our friend said, in my opinion, is helpful.