Last Update: August 2021

And so we meet again!

We are back this week to bring to ourselves full circle on the goal-setting process. We have talked about how we measure our progress by setting money goals, or perhaps we could call them milestones. We have discussed how we take our BIG picture and break it down into smaller steps that bring us closer to that ultimate goal. We have gone over the system of setting two types of goals. We have talked about the motivation that these money or financial goals can bring. The only left to figure out is how we make that transformation that we spoke about last week. You know, how we go from wishing we had something to actually making a plan to acquiring the desired result.

The way we make our transition is to set activity-based goals. We need to change our mindset, our habits, our knowledge base, etc. We need to become the type of person that would be successful at whatever it is we are after. In our case here we are looking to become a successful trader. How do we do that?

Well, first we need to figure out what successful traders do. Now you could go out and study or interview a bunch of successful traders and try to figure out what makes them tick but that is very labor-intensive and that is not the best use of your time, especially since the lads here at Tackle Trading have done all that legwork for you.

The world’s best traders have a few traits in common and they go a little something like this. First, they are knowledgeable. They fully understand the realm that they are operating in. They have studied things like odds and probabilities. They have studied the psychology of markets. They understand the basics of human psychology. They have studied the principles of risk and reward. Suffice it to say they are well versed in the business of trading.

Successful traders are also extremely patient. They realize that opportunities can take time to develop. A trader’s patience can be described as that of the alligator. Alligators will sit in wait until their prey gets too close to the watering hole to take a drink that it is almost impossible to retreat after the gator strikes. The strike comes and it is all over. This is how successful traders are, they will wait for an opportunity and then strike when it is most advantageous. This leads to the next thing that successful traders are.

Successful traders are action-oriented. They perform their due diligence by going through all the possible scenarios for a trade and then when they decide it is right they take action with no hesitation. The markets move very rapidly and we as traders must do the same. There is a host of other traits that we will deal with at another time in this blog. Going through this list had the purpose of helping us figure out what traits and skills we need to develop to be a successful trader.

Now that we know what we need to develop to begin the transformation we can set our activity goals to become the person we need to be to be successful. So first we need to become knowledgeable. We need to learn the psychology of trading, we need to learn odds and probabilities, etc. So, our first activity goal should be setting aside a block of time each week to study these concepts. Once we learn something, we need to practice it so that it becomes second nature so that we can be action-oriented like successful traders. We need to learn a concept so well that we can recognize when it is happening and execute the trade immediately without hesitation. In conjunction with this, we need to set time aside to practice what we learn. Through virtual trading, we can make a goal of testing a trading strategy several times each week and watching to see how those trades play out gaining valuable trading wisdom in the process.

Next, we have to develop the skill of self-reflection. This is doing a review of our actions to see where we made mistakes and where we excelled so that we understand what we need to work on to become better. We can set aside a portion of time each week to review not only our open trades but our outcomes on closed trades to glean wisdom from that activity.

I trust you can see through these examples the difference between money goals and activity goals. We need to get active if we ever hope to get to the money goals. I would say with 100% certainty that if you fail to achieve your activity goals that it is highly unlikely that your monetary goals will become a reality.

This is the end of the goal-setting process. We set goals to motivate us and help us become who we want to be. The last part of success in goal-setting is to use the written goals to spur you onto greater success. So here is the challenge. Take the BIG picture and break it down into smaller steps that can be monitored. Then set activity goals that will bring to your smaller step goals. Then get to work on learning all the things you need to be successful. Make sure you write all your goals down and revisit them on a regular basis, that by the way is also a great activity goal to set.

Now that we have put goal-setting to bed, next week we will be diving right into the four things every trader must learn to be successful. That list again is Fundamental Analysis, Technical Analysis, Cashflow and Risk Management. Next week we are going to tackle Fundamental Analysis. We are going to explore what makes a company worth owning and what makes a company worth running away from!

Until next time my friends…..trade well!

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