The first thing that I want to ask you is whether or not you actually have any trading aims? You would be surprised at how many people have not actually made any when we start out trading, there is often an overall target that we want to achieve. For some, it will be to be able to quit their job. For others, it may be to make $1,000,000 overnight, some will be far more modest than others, just to make an extra $100 a month as spending money. Some will be far more realistic than others, but what is important is that you have one and that you have defined them.
It is important to ensure that you have defined your aims and goals properly, these should be set out in a way that makes them easy to understand and that they are achievable. There is no point putting down that you want to be a millionaire when you are starting from $100. It could be your overall aim, but you need to have stages along the way, make your first $100, the first $10,000, become risk-free (remove initial money) and so forth, these are what you will be doing at different milestones and these are what you will be aiming for rather than the overall millionaire status.
So this leads us to the first reason why you may not be achieving your aim, they are simply too big and too ambitious. As we mentioned above, there is no point setting your only aim as $10,000,000 profit, it may happen one day but that won’t be for a long time, if you set things too high they will not be achievable in a sensible timeframe. Set your aims lower, at least the initial ones, they need to be achievable, even if it may seem pretty low and potentially easy compared to your overall aim.
The next thing that you need to consider is whether or not you have a trading plan that goes along with the aims that you want to achieve. There is no point in having a goal to create a trading plan if you are just going to copy other people’s trades. Whatever your aim is, you need to be able to set out a plan which will detail how you are going to achieve it, this should contain the steps that you need to take and by what time you are wanting to achieve them. Ensure that the plan and the aims within it are achievable, have a timed deadline and that they are relevant to what you want to achieve.
Leading on from the previous point, you need to be able to show some dedication and commitment to the trading plan and the aims that you have created. Sometimes it can be pretty hard to keep doing something especially if it is not going the way that you want it to. Q lot of traders will quit after a number of losses in a row, or completely change their trading plan and style. It is important that you are able to stick with it, through both the good and the bad times, and there will be bad times. Being able to remain on track and following your plan will allow you to get through those hard times and your results will be much more in line with the expected results that you detailed when creating the plan in the first place. Sticking to the plan will make your aims and targets much more achievable and much more realistic to reach them.
How about distractions, are you easily distracted? We are not thinking about the TV or the person sitting next to you, they can of course put you off your trading game, but we are talking about distractions from your trading aims. You have them set, but you are on your way to achieving one and suddenly you think of something else, you want to alter those goals to something else,l but everything has been set up to achieve this, so do not let these new thoughts get in the way of your trading and to get in the way of the achieving those aims. Once you have made your goals, set your sights on them, and do not let anything make you doubt or change them. You set them for a reason, remember that reason and remember those goals, do not change them partway through as it can completely throw your trading game out of sync.
It is important to take breaks when trading, to move away from the markets in order to clear your mind, but what it is not ok to do is to take breaks from your aims and your trading plan. Every trade that you make should be with your trading plan in mind, you should be making each one in order to get a little closer to achieving that target. Do not take a break from this and make trades that are nothing to do with then, based on a gamble, a thought, or simply for fun. This will only take you further from achieving your target and will put your account in additional risk. Stick to your plan, stick to your aims, and keep your trades focused on them.
Something else that can really make you lose track of your targets and certainly make them harder to achieve is if you are not tracking them. Tracking your aims and your progress towards them can give you a lot of motivation. In fact, it can help push you to follow them and push yourself to achieve them. Where the issue comes from is when you are not tracking them, how will you know how close you are to the target if you are not marking down each result or where you are in relation to it? This can cause you to lose focus and also a lot of motivation for it. Regularly revisiting your results and your progress towards your aims are paramount to actually achieving them.
The last thing that we wanted to look into is the fact that some people look at their target as a quick thing, where in reality, your targets should be a marathon and not a sprint. Take your time to achieve your targets, as soon as you begin to try and rush them, mistakes will be made which will only take you further and further away from achieving the goals. Be sure that you take your time, one step at a time and you’ll be in a much better position and mindset for achieving your targets.
So those are a few of the things that could be causing you to miss out on this target, remember to set them in a way that they can actually be achieved and that they are measurable. Stay focused on them, do not get distracted and you will be in a fantastic position to achieve them or at least to be on the right track to achieve them down the line.