“Only 5% of the population has its goals written down on paper and that 5% makes more than the other 95% combined.” – Peter Voogd
I decided to share the goals I want to accomplished by the end of 2015. Each month, I'll be reviewing my progress. I'm committed to what I set my mind to and I truly believe that the goals described below will push my trading forward. They will work for any committed trader as well.
There are 2 reasons why I decided to share my goals with you:
- To create a sense of accountability
- Because I want to inspire others to set their own goals.
Having your goals written down on paper is such a transforming thing to do. You'll have something to look forward to and it makes the trading process much more like an activity in which you want to perform at your best.
Before jumping into my goals though, there's an aspect I want you to understand:
Why no money goals?
When I decided to set myself trading goals, I first wrote something along the lines of: “I want to make $25,000 in trading income by the end of January 2016”. However, I began thinking about it and I realized that this way of setting goals wasn't a great idea. The reason is, there can be bad cycles in the market. Sometimes, traders can't avoid them. They must deal with those cycles. In those moments, the main goal of the trader is to not get disturbed or discouraged and stick to his trading rules.
I realized that it made more sense to focus on mastering a tested strategy instead of thinking about making money straight away. For more details, I've written a full article as to why traders should focus on execution instead of making money.
1. Setting up trading checklists
Recently, I got the idea of creating checklist that I can simply follow line-by-line when I trade. I already made a checklist for my main Forex Trading Price Action Strategy, which you can get for FREE.
My goal is to have a checklist for each of my strategy by the end of 2015. Each checklist will contain the things I must look for in an entry signal, as well as how I must set the exit order. Moreover, I'll have examples of each setup and exit on each checklist.
Reason: having a checklist will make my trading process easier to follow. Instead of reading my trading plan a few times, I'll be able to refer to simple check boxes.
2. Using the T1/T2 approach
In the article called A Simple Trade Management Strategy To Get More Profit, I described a very easy way you can lock in profit without closing your trade too early. Since I learned about this strategy, I haven't been implementing it at all times. My goal before the end of 2015 is to use the technique for all my trading strategies.
The truth is, it's often hard to implement something. We don't want to make the effort. However, a trader that uses what he learns will inevitably get results.
Reason: The T1/T2 Approach allows to lock in profit. Who doesn't want to get less losing trades and secure more profit while still benefiting from the market? I WANT TO!
3. Trading out loud
Houston Truong, the owner of the trading blog The Trading Edge. In a presentation Houston gave, he mentioned the idea of trading out loud, that is, speaking to yourself while you trade. At first, this idea might seems weird but after thinking about it, I decided I would give it a try. The idea is to simply rehearse your trading process out loud as see things on the chart. For instance, you could say out loud: “So here is a good support area, which may be an indication to buy. There's also a great candlestick pattern. The trend though is steep and downward. I'll forget that trade.”
Reason: when someone speaks out loud, his brain records what is said. The trading process will inevitably get more clear in the person's mind. In my case, it's also going tom make it easier teaching my trading strategy.
4. Establishing and following rewards/punishments
In the The Guide To The Ultimate Trading Plan, I mention the importance of setting rewards and punishments for following or not your trading rules. I set rewards and punishments myself but I just realized that I wasn't consistent on applying those.
Reason: having rewards and punishments are a great way to stick to your trading strategy. I'm curious to see whether it's going to impact my trading.
Are your goals written on paper?
If yes, you are heading in the right direction. If not, I strongly recommend taking time to think about your goals. What could make you a better trader? Write that down and focus on it for the next 30 days. Find solutions that you can implement. Trust me, it will transform your trading outcome.