November 8, 2017
The Best Daily Goal for Traders | Trading Psychology
Today’s Trading Psychology question of the day…
“What’s the best daily goal for a new trader?”
This is a great question, and I’m glad somebody asked this question, because this is something that I did the WRONG way when I first started my trading career, and it’s something that, when done correctly, will have a big impact on the success of your career.
First of all, I’m going to assume that you have a trading strategy that you can rely on. You’re working with someone who has experience, and is teaching you the specific strategy.
This is NOT for someone who doesn’t have a proven strategy, doesn’t a system to follow, that has proven itself over a long period of time.
With that said, let’s dig in…
In my trade room each morning, my clients can hear me saying “focus on the process, not the profit”, and this lesson is going to address that specifically.
“What’s the best daily goal for a new trader?”
In my opinion, the most effective daily goal has nothing to do with money or trades.
The most effective daily goals have everything to do with specific goals, which are tied to actions that YOU can control.
In other words, the most effective daily goals are (1) within our control, and (2) they focus on accomplishing the goals that we’ve set by reading our journal (which we’ve discussed in previous lessons).
Let’s dig into this further…
First, it’s important that you understand that your self-image as a trader is made up of your experiences thus far.
If you’ve had a hard time with trading when you begin, your self-image will be mostly negative.
If you’ve had success in the beginning of your career, your self-image is most likely positive.
This is pretty basic stuff, I know…But…
It’s important to understand that whatever your experience has been thus far, you are going to associate that with who you are, and that can either HELP or HURT your chances of success in the future.
Why is that important? Because we want to make sure that your daily goal is BUILDING our confidence, rather than tearing it down.
So… our daily goal needs to build us up, instead of tearing us down. Forget about the money when you’re a new trader, and focus on the process… the process of building your confidence.
Speaking of the process…
My daily goal should always be focused on something I can control, such as entering a trade correctly, rather than making money on a trade.
I want to focus my goals on the actions, for which I can control, that will ultimately produce the results I want… such as making money.
Think of it this way too…you should NEVER be trading without consciously working to improve a specific aspect of your trading strategy.
For example…
If you’re new to trading, your daily goal could be as simple as using the correct signal-candle, buy off a green candle, and sell off a red candle, etc. Keep it simple at first!
As you gain more experience, and these smaller goals become habit for you… and you’ve built up your confidence, then your daily goal moves up to “managing the trade correctly” (as an example.)
The ultimate goal of this is to make sure that every day you keep building confidence, which is achieved by doing things that YOU have control of, and doing them the correct way.
Let’s recap…
The best goals for new traders are NOT tied to money… they are tied to actions, that are within OUR control, and when done correctly, will produce the money you want.
The best goal is tied to executing your trading strategy, not the profit you’re trading strategy is trying to earn.
This type of daily goal will grow your confidence, develop a sense of competence, and in turn, support a positive self-image, which (in my opinion) is like rocket-fuel for reaching your monetary goals.
And remember, the best time to start doing this is NOW.
Don’t wait until you’re losing money because (as we discussed in previous lessons) every day is an opportunity to identify areas where you can improve… and professional traders are aware that the day they stop improving is the beginning of the end of their trading career.
Guys… I hope you found value in today’s trading psychology lesson…
…and I would love to hear from you about additional topics that you’re struggling with as traders.
Do me a favor…drop me a comment below this video with any topics you’d like to see me cover in my trading psychology video…
…make sure to give me a thumbs-up if you found value, and share it with a friend who can benefit from this information as well.
It doesn’t matter what market we trade, or the strategy we use, even the best traders battle with their emotions when there’s money on the line.
And don’t forget, you can find me every morning @ 8:00am EST in my trade room with all of our members here at SchoolOfTrade.com, I have a great free trial on the homepage of our website, I publish my Nightly Newsletter every evening on my blog before 8:00pm EST, and I’m excited to see you again soon on my next trading psychology lesson.
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