Objectives and Golas

What are your expectations for your trading? This is vital to understand as unrealistic expectations will tend to lead you down the path of searching never finding what you hope for as the expectancy is not real.

The three biggest pitfalls for traders are impulsive trading, expecting too much and incorrectly position sizing. These issues will defy anyone success and turn a positive expectancy system into a negative expectancy system.

If you have not identified your Trading Objectives, STOP HERE!

Take the next few days and identify your Trading Objectives/Goals.

Goals should consist of the following criteria.

Specific
Measurable
Attainable
Realistic
Timely

I want to make money is NOT a SMART goal.
I want to be a full time trader is NOT a SMART goal.

I want to achieve an average an income of $10,000 dollars a month over the next 12 months sitting by the pool sipping margaritas is NOT a SMART goal. Unless the pool is filled with money it does not meet the A or R part of the SMART goal.

I want to achieve an average income of $3,000 dollars a month over the next 12 months utilizing a $250,000 account while keeping my risk within 2% of my account. I want to achieve this working 20 hours a week trading a system that will give me a win expectancy of 90% is NOT a SMART goal. 90% does NOT meet the R part of a SMART goal.

BUT....

I want to achieve an average income of $3,000 dollars a month over the next 12 months utilizing a $250,000 account while keeping my risk within 2% of my account. I want to achieve this working 20 hours a week trading a system that will give me a win expectancy of 60% IS a SMART goal.

The above statement is Specific, Measurable, Attainable, Realistic, and Timely. We can measure this goal as it is specific. It appears Attainable and Realistic and we can measure within a time span to see how we are progressing.

The S, M and T parts of the SMART goal is easiest. The A and R parts may be uncertain depending on your experience. My suggesstion is to learn to make $100 dollars before you try to learn to make $1,000.

Once you indentify a winning expectancy system and learn to trade it successful, it is a matter of account and postion sizing to meet your goals.

Once your objectives and goals are identified we can identify the trading tools you will need to achieve these goals.