Goal setting in trading and investing, and indeed in any area of your life, has two vital items involved in goal setting and goal attainment: i) perceived difficulty of the goal; and ii) how specific your goal is.
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.
So with a trading/investing goal example to earn $50,000 for the year, a more difficult and specific goal may be $51,600. If your brain perceives $51,600 yearly earning as a more specific goal than $50,000 yearly earning then you are more likely to raise your performance to achieve your goal of $51,600.
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.
And people are more likely to perform well when the goal is seen as believable based upon their knowledge, their training, and their skills. When people know it CAN happen because they CAN make it happen, performance increases. So don't set a completely unrealistic goal.
As you work towards achieving your goal, your belief in the importance of achieving your goal will make you more committed to your goal. As you assess your progress you will be reinforcing your commitment when seeing results. This will strengthen your performance to achieving your goal.
Seeing progress in share trading can be from something as straight forward as a running tally of your earnings year to date. You want to earn $72,400 from your trading this year. You see yourself at $38,100 in July and you know you are well on your way based upon simple arithmetic.
Often when starting something new, we don't bother to set goals. When starting in trading and investing, often it is good just to see a result. But imagine how much more meaningful this would be if the result reflected a set goal which was difficult, specific and important. We would be able to measure our progress which would add to our performance in achieving the goal at hand. Very satisfying and very positive.
Think about your trading goals. Set yourself some specific, difficult and measurable trading goals and understand why you want to achieve them. Then start measuring your progress.
In his excellent text book "The Psychology of Persuasion", Kevin Hogan talks about "the least acceptable result". What is your LEAST ACCEPTABLE RESULT from your trading? Think about this very carefully because this is the true goal that most people WILL achieve from any activity. You must move your Least Acceptable Result up to the level of your goal. - 23210
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.
So with a trading/investing goal example to earn $50,000 for the year, a more difficult and specific goal may be $51,600. If your brain perceives $51,600 yearly earning as a more specific goal than $50,000 yearly earning then you are more likely to raise your performance to achieve your goal of $51,600.
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.
And people are more likely to perform well when the goal is seen as believable based upon their knowledge, their training, and their skills. When people know it CAN happen because they CAN make it happen, performance increases. So don't set a completely unrealistic goal.
As you work towards achieving your goal, your belief in the importance of achieving your goal will make you more committed to your goal. As you assess your progress you will be reinforcing your commitment when seeing results. This will strengthen your performance to achieving your goal.
Seeing progress in share trading can be from something as straight forward as a running tally of your earnings year to date. You want to earn $72,400 from your trading this year. You see yourself at $38,100 in July and you know you are well on your way based upon simple arithmetic.
Often when starting something new, we don't bother to set goals. When starting in trading and investing, often it is good just to see a result. But imagine how much more meaningful this would be if the result reflected a set goal which was difficult, specific and important. We would be able to measure our progress which would add to our performance in achieving the goal at hand. Very satisfying and very positive.
Think about your trading goals. Set yourself some specific, difficult and measurable trading goals and understand why you want to achieve them. Then start measuring your progress.
In his excellent text book "The Psychology of Persuasion", Kevin Hogan talks about "the least acceptable result". What is your LEAST ACCEPTABLE RESULT from your trading? Think about this very carefully because this is the true goal that most people WILL achieve from any activity. You must move your Least Acceptable Result up to the level of your goal. - 23210
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