goal setting.
Posted: Tue Aug 24, 2004 1:14 am
I feel that goal setting is important to trading psychology and performance. So, those of you who set goals and use them, how do you make them relevent to your trading?
Of course, the specifics of any outcome based goal must be based partly on the system or method the trader is using, and the range of expected outcomes. for example, as ksberg insinuated in another post, a short term goal of profit may not be a good goal for a long term trend trader.
I have found that my favorite method of goal setting is a stairstep: a large number of small, EASY goals that give quick feedback. Break the big picture into little bites.
Since the goal of my trading is profit, I look to make stairstep goals in that direction. each one, not being such a stretch, but leading to bigger things. Part of my plan also involves how I buy the T bills, using that as a way to psychologically "create" the step.
I have found this approach reinforced in other areas of my life. for example, i thought of this when paddling my sea kayak up a deep water channel with a very fast moving current. I have heard it said many times, that the current in the channel it too fast to make it all the way up. Yet, i do it all the time!! I have found a bunch of small goals in the channel: little inlets that I can see with my eyes, aim for, and paddle like hell till i reach them. I rest up, then do it again. climbing the stair step..
Occasionally, I miss my mark and with 100% effort, I have to let the current take me back. At this point, the goal is to get back in the original cove, look up the bend for a "smaller" step, then go for it again. The most i have had to repeat this process was 4 times. And, it feels damn good when you get it!!
IN the end, I make it all the way up. Yet, i never focused on the long term objective. only what i could accomplish that was right in front of me.
Possibly a silly story yet, I love to see when the same principles apply through all of life.
anyone else have approaches or expereinces with goal setting, and how to make them relevent in life and in trading???
Of course, the specifics of any outcome based goal must be based partly on the system or method the trader is using, and the range of expected outcomes. for example, as ksberg insinuated in another post, a short term goal of profit may not be a good goal for a long term trend trader.
I have found that my favorite method of goal setting is a stairstep: a large number of small, EASY goals that give quick feedback. Break the big picture into little bites.
Since the goal of my trading is profit, I look to make stairstep goals in that direction. each one, not being such a stretch, but leading to bigger things. Part of my plan also involves how I buy the T bills, using that as a way to psychologically "create" the step.
I have found this approach reinforced in other areas of my life. for example, i thought of this when paddling my sea kayak up a deep water channel with a very fast moving current. I have heard it said many times, that the current in the channel it too fast to make it all the way up. Yet, i do it all the time!! I have found a bunch of small goals in the channel: little inlets that I can see with my eyes, aim for, and paddle like hell till i reach them. I rest up, then do it again. climbing the stair step..
Occasionally, I miss my mark and with 100% effort, I have to let the current take me back. At this point, the goal is to get back in the original cove, look up the bend for a "smaller" step, then go for it again. The most i have had to repeat this process was 4 times. And, it feels damn good when you get it!!
IN the end, I make it all the way up. Yet, i never focused on the long term objective. only what i could accomplish that was right in front of me.
Possibly a silly story yet, I love to see when the same principles apply through all of life.
anyone else have approaches or expereinces with goal setting, and how to make them relevent in life and in trading???