What are people's thoughts on setting goals?
Does setting SMART goals (Specific, Measurable, Achievable, Realistic Targets) help you get where you want to go with your trading, or does it just put unnecessary pressure on you?
Jeff
Goals
I set goals but nothing too specific, Like my goal is to get my weekly average over 1k a week after premium charge (very nearly there!). Then it will be 2k a week then eventually I want to be in the grand a day club!
I don't have daily goals, just try and get as much profit as possible.
I don't have daily goals, just try and get as much profit as possible.
I think that's a decent approach. Start with small goals and then just keep pushing yourself to the next level, but only in small chunks.
You have to accept though that the markets are sometimes just nowhere near aligned to your trading style and you will go through rough patches. When that happens you shouldn't let your discipline slip in order to reach your goals. You just need to accept that in general you are moving in the right direction and keep heading there.
You have to accept though that the markets are sometimes just nowhere near aligned to your trading style and you will go through rough patches. When that happens you shouldn't let your discipline slip in order to reach your goals. You just need to accept that in general you are moving in the right direction and keep heading there.
S M A R T goals work if you commit to them and follow the plan, measuring and reviewing your progress is the most important part.
As far as trading goals go, it is better to set goals based on the process rather than the money. eg I will take every trade my system shows, I will never let a trade go in running, I will always use running stops. NOT I will make £200 a day etc.
It has been shown by a number of trading coaches that, concentrating on getting the process right works far better than, concentrating on the money.
BTW there are a number of places on the web you can get S M A R T goal templates from
Steve
As far as trading goals go, it is better to set goals based on the process rather than the money. eg I will take every trade my system shows, I will never let a trade go in running, I will always use running stops. NOT I will make £200 a day etc.
It has been shown by a number of trading coaches that, concentrating on getting the process right works far better than, concentrating on the money.
BTW there are a number of places on the web you can get S M A R T goal templates from
Steve
Thanks Guys.
BTW, I've come across an interesting video that talks about the psychology of risk:
http://link.brightcove.com/services/pla ... 3450504001
Jeff
BTW, I've come across an interesting video that talks about the psychology of risk:
http://link.brightcove.com/services/pla ... 3450504001
Jeff
bugrit wrote:S M A R T goals work if you commit to them and follow the plan, measuring and reviewing your progress is the most important part.
As far as trading goals go, it is better to set goals based on the process rather than the money. eg I will take every trade my system shows, I will never let a trade go in running, I will always use running stops. NOT I will make £200 a day etc.
It has been shown by a number of trading coaches that, concentrating on getting the process right works far better than, concentrating on the money.
BTW there are a number of places on the web you can get S M A R T goal templates from
Steve
Hi Jeff,
I hear so much claptrap about targets at work (SMART is the perfect example) that I pay little attention to the latest twaddle to come from America. I do set cautious targets, through. A bank of 20 times my unit trade, hence the unit trade goes up one pound for every 20 pounds made, with a long term target of £300 unit trades. Since my "average minimum" profit is about 1/3 of a point, I'd be able to make £100 minimum per day (equivelant to my salary)at that level. If I can maintain that level for a year, I'd have a year's "back salary" and the option to consider trading for a living,
cheers, P
I hear so much claptrap about targets at work (SMART is the perfect example) that I pay little attention to the latest twaddle to come from America. I do set cautious targets, through. A bank of 20 times my unit trade, hence the unit trade goes up one pound for every 20 pounds made, with a long term target of £300 unit trades. Since my "average minimum" profit is about 1/3 of a point, I'd be able to make £100 minimum per day (equivelant to my salary)at that level. If I can maintain that level for a year, I'd have a year's "back salary" and the option to consider trading for a living,
cheers, P
Hi Prediction
My dilemma with regards to goals is that I'm not sure whether it is twaddle.
Part of me thinks 'The way to get what you want in life is just to roll up your sleeves and do the necessary work'. But equally, with some many intelligent people on both sides of the Atlantic being into goal setting, you have to wonder whether it has some merit...
Jeff
My dilemma with regards to goals is that I'm not sure whether it is twaddle.
Part of me thinks 'The way to get what you want in life is just to roll up your sleeves and do the necessary work'. But equally, with some many intelligent people on both sides of the Atlantic being into goal setting, you have to wonder whether it has some merit...
Jeff
Predicton wrote:Hi Jeff,
I hear so much claptrap about targets at work (SMART is the perfect example) that I pay little attention to the latest twaddle to come from America. I do set cautious targets, through. A bank of 20 times my unit trade, hence the unit trade goes up one pound for every 20 pounds made, with a long term target of £300 unit trades. Since my "average minimum" profit is about 1/3 of a point, I'd be able to make £100 minimum per day (equivelant to my salary)at that level. If I can maintain that level for a year, I'd have a year's "back salary" and the option to consider trading for a living,
cheers, P
I think the biggest flaws I have seen are dual: -
(1) Often people don't raise their stakes at any point and never get off first base. Return on turnover is so low that you need to raise your stakes to see any decent return.
(2) People raise their stakes too quickly and suffer a nasty loss at some point which makes them lose their confidence.
I popped up a post on the blog recently which summarises what I think quite neatly: -
http://www.betangel.com/blog_wp/2010/03 ... -strategy/
I'll put the update graph to this strategy if you wish and you can see how nudging the stakes forward has accelerated the profits from the point at which I put up this post.
(1) Often people don't raise their stakes at any point and never get off first base. Return on turnover is so low that you need to raise your stakes to see any decent return.
(2) People raise their stakes too quickly and suffer a nasty loss at some point which makes them lose their confidence.
I popped up a post on the blog recently which summarises what I think quite neatly: -
http://www.betangel.com/blog_wp/2010/03 ... -strategy/
I'll put the update graph to this strategy if you wish and you can see how nudging the stakes forward has accelerated the profits from the point at which I put up this post.
As with so many other things its a case of what works for you. Some people like setting goals others dont, you wont magically achieve things by just setting goals. But they can/do help you to concentrate your efforts, especially if you review your progress regularly and do more of what works and less of what doesnt.
A number of years ago a study was made of a group of college students in the states, only about 4% of them made a written set of goals and a life plan. This group went on to have the highest net worth in adulthood of the group. Was this the goals or just that the go getters made goals?
Other more recent studies suggest that working towards a specific goal, which is achievable, challenging and was set by the individual rather than his teacher/coach/manager, improves performance, life satisfaction and self esteem across a broad sectrum of groups. Including pro sports players, students, test pilots and people being treated for depression.
Personally I feel setting goals helps me, but as ever others will have a different view.
A number of years ago a study was made of a group of college students in the states, only about 4% of them made a written set of goals and a life plan. This group went on to have the highest net worth in adulthood of the group. Was this the goals or just that the go getters made goals?
Other more recent studies suggest that working towards a specific goal, which is achievable, challenging and was set by the individual rather than his teacher/coach/manager, improves performance, life satisfaction and self esteem across a broad sectrum of groups. Including pro sports players, students, test pilots and people being treated for depression.
Personally I feel setting goals helps me, but as ever others will have a different view.
Hi Bugrit
Interesting stuff (and, if a many say, very upbeat for someone whose name is Bugrit! LOL!).
I've heard it said that a goal is a dream with a deadline, and a dream without a deadline is just a wish. I've also read that, if you don't set goals, all your tomorrows will be like all your yesterdays. So maybe goal setting is necessary to break free from procrastination and knuckle down to achieving your aims in life.
Jeff
Interesting stuff (and, if a many say, very upbeat for someone whose name is Bugrit! LOL!).
I've heard it said that a goal is a dream with a deadline, and a dream without a deadline is just a wish. I've also read that, if you don't set goals, all your tomorrows will be like all your yesterdays. So maybe goal setting is necessary to break free from procrastination and knuckle down to achieving your aims in life.
Jeff
bugrit wrote:As with so many other things its a case of what works for you. Some people like setting goals others dont, you wont magically achieve things by just setting goals. But they can/do help you to concentrate your efforts, especially if you review your progress regularly and do more of what works and less of what doesnt.
A number of years ago a study was made of a group of college students in the states, only about 4% of them made a written set of goals and a life plan. This group went on to have the highest net worth in adulthood of the group. Was this the goals or just that the go getters made goals?
Other more recent studies suggest that working towards a specific goal, which is achievable, challenging and was set by the individual rather than his teacher/coach/manager, improves performance, life satisfaction and self esteem across a broad sectrum of groups. Including pro sports players, students, test pilots and people being treated for depression.
Personally I feel setting goals helps me, but as ever others will have a different view.
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lilgreenback
- Posts: 211
- Joined: Thu Apr 16, 2009 11:28 am
Hi
Never really got into the Discworld, "world", did he write Magic Kingdom For Sale Sold? quite liked that.
However the avatar is it not Muttly from Catch the Pigeon? who's sidekick is Richard Dastardly or should I say Mandleson and Brown
The Man who would be King eh
If correct can I have a medal!!!he he he.
Cheers
LilGreenback
Never really got into the Discworld, "world", did he write Magic Kingdom For Sale Sold? quite liked that.
However the avatar is it not Muttly from Catch the Pigeon? who's sidekick is Richard Dastardly or should I say Mandleson and Brown
The Man who would be King eh If correct can I have a medal!!!he he he.
Cheers
LilGreenback
I used to have a target, not that smart in the hindsight, of generating £100 a day. Well currently I average to £0 but as Peter said once it's not about how much but whether it's plus or minus (not his exact words as you can tell). My SMART objectives would be:
1) Specific - what you want to achieve - I think you should leave out how much you want to achieve and concentrate on achivening positive however small
2) Measurable - I want to achieve x % of days with postive return rather than x £
3) Achiveble - If you forget about how much but instead concentrate on + or - then its achievable
4) Realistic - Expected return should be based on the balance between psychology, mental dexterity, monetary capability, physical input.
5) Time - Its individual depending on how much time you're able, willing, want, capable of spending before you 'crack the code'. IMO about two years is not too unrealistic.
Sorry if its not too helpful but I'm on the journey myself and not there yet but able to see the all the efforts, money & sweat that might bear some fruits in not too distant a future.
1) Specific - what you want to achieve - I think you should leave out how much you want to achieve and concentrate on achivening positive however small
2) Measurable - I want to achieve x % of days with postive return rather than x £
3) Achiveble - If you forget about how much but instead concentrate on + or - then its achievable
4) Realistic - Expected return should be based on the balance between psychology, mental dexterity, monetary capability, physical input.
5) Time - Its individual depending on how much time you're able, willing, want, capable of spending before you 'crack the code'. IMO about two years is not too unrealistic.
Sorry if its not too helpful but I'm on the journey myself and not there yet but able to see the all the efforts, money & sweat that might bear some fruits in not too distant a future.