Norman Hallett, The Disciplined Trader, is getting into a new series with the 4-Minute Drill videos. This week, he focuses on the characteristics of a successful trader and discusses the first characteristic, which is being goal oriented. He will go into the specifics of what being goal oriented means to a trader in this week’s drill included below.
WATCH THE FULL MARKET EDUCATION VIDEO HERE:
READ THE FULL SCRIPT OF THE VIDEO HERE:
Hi, Norman Hallett here with your next 4 Minute Drill for Traders.
Having managed successful brokers in the 80s and 90s and having
taught individual traders over the last decade …
I’ve observed a few common Characteristics of Successful Traders.
… so let me give you my take on this.
But first let me say that many traders take actions that aren’t in their best self-interest. They make irrational trades… they make trades based on emotion, rather than logic…
…they hold on to losing positions due to their unwillingness to admit they made a bad trade.
… they trade based on greed or panic… the list is endless.
Successful traders, on the other hand, all have a few things in common… and developing these characteristics and habits will help make YOU a successful trader.
OK…OBSERVATION #1 … Successful Traders Set Goals.
Successful traders tend to be incredibly goal-oriented. Why?
Most people perform at their best when they are reaching for a CLEAR goal… and there are 3 basic qualities that make up a clear goal…
(1) The goal must be realistic. If you’re goal is to double your money every day… well, that sounds great, but it’s not realistic. BE REALISTIC.
(2) The goal must be attainable. Just like with a realistic goal, an attainable goal must be within your current capabilities.
The BEST goals are short-term goals.. make your first goal a small one… and then continue to increase your goals as you experience success.
World-class sprinters don’t start by thinking of winning the Olympics. They win locally, then regionally, and take on bigger challenges as they go.
(3) The goal must be measurable. Goals that AREN’T precise, and can’t be quantified or measured, aren’t really goals at all.
If your goal is to be wealthy, that’s great.. but what does “Wealthy” mean?
My guess is that your definition of wealth will change as your net worth increases.
If you can’t define your goal, and measure your progress toward it, then you have no way of assessing your progress or of making changes to your techniques and strategies that ALLOW YOU to reach your goal.
Successful traders set goals, and they also are confident they can reach their goals.
CONFIDENCE is the key to staying rational, logical, and disciplined.
Starting with small, realistic goals will help build your confidence in yourself and your abilities.
OK.. that’s it for this edition of 4 Minute Drill for Traders.
Next week we’ll continue go through some more characteristics of the Successful Trader.
In the meantime, why not use the comment area to share a little bit about YOUR current goals as a trader… and remember… BE SPECIFIC.
So…. Until next time…