Trouble with Setting Goals

"My goal for the long term is to average 1pt. out of the Mini Russel each day.

I believe by doing this I'm putting limiting beliefs on my possible performance.. "


So, it sounds to me like you don't really have a consistent goal. On the one hand, you have a goal of 1 pt a day; on the other hand, you believe 1 pt is limiting you. Goals are great things that can be incredibly useful, but they really must be congruent with your overall thinking and beliefs, otherwise, you will override them. That sets up a no-win situation for you.

Setting a target amount of money is really not a very useful way to set a goal. Markets vary considerably--sometimes flat, sometimes trending. Having a fixed dollar amount is inconsistent with the realities of the market. Think about how atheletes set goals. A tennis player, for example, might set a goal of coming into the net X% of the time as a way to improve his or her game. Or, they might have a goal of taking pace off their first serve to improve their first serve percentages.

Atheletes have a realistic game plan and set multiple goals within the context of the plan; their goals are never about winning (that is a definite aspiration, but not really a tangible objective). The main idea is that if you focus on improving yourself within the context of your plan, the wins will take care of themselves.

So, if you can agree with this premise, then what is your plan and where can you find opportunities to improve? What are your trade set-ups? What do they look like and what has to happen with indicators, price, volume, or whatever you use to trigger the trade? Are these written down? Do you have more than one set-up? What is the exit strategy? Where do you place stops? How do you know to get out if they trade isn't working and what does that look like? Have you kept records on how you have performed under each individual set-up? Without records and statistics, you can't really assess very much (think of any sport and all the stats that are kept--there is a reason for this). Once you have a clear plan that has good details and a records system, you can begin to set goals, look for opportunities to improve, and track your progress.

When you have a clear, detailed trading plan that you can and do fully commit to, it will never bother you that the market has run another 5 points after your trade has come and gone, because you traded properly. I've yet to hear a running back come back into the huddle after making a 12-yard run and complain that they should have gone for 25 yards! They executed a play in their game plan and now it on to the next play. It can be the same with trading.

Whit

 

Thanks Whit,

Very good points you make.

I'm working on defining my plan more precisely and trading that plan flawlessly. Without paying attention to the money..

I know that if I follow my rules the money will come and I believe at a faster pace than 1pt. a day...

 

My goal is to get positive after 6 months. One I have a positive month I want to say I need to make at least 300 a day on average

 

Flash, it is so nice to see someone who uses their grey matter. Do not let anyone tell you different. Consistency means more to a trader than killing the market one day and giving it all back the next. You see OddTrader bailed when you pulled the "Jerry McGuire" on him.

There aren't many daytraders making $300K consistently per year. Remember that. Stick to your guns and if anything, once your consistency has aged about 6 months, increase the goal to 1.5 points a day. (I know someone that averages 3 points + a day in the mini Russell so your theory works, consistency rules) Go Flash Go!

 

Whit makes GREAT points even if he has only 2 posts.

Daily goals will kill you. Work on your setups and entries. When these come up in the market, you attack with full size. It took me 5 years to realize this. Stress and volume are down while profitability is up. It takes 1 to 4 days a month to bang out a great year.

 

so true . . .

 

Agreed.

On these days, the setups are clear enough for just about anybody to make money. What distinguishes the winners from the rest of the crowd is their ability to keep themselves in check on the other 16 days of each month.