{"id":38071,"date":"2014-06-19T12:19:43","date_gmt":"2014-06-19T16:19:43","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=38071"},"modified":"2014-06-19T12:19:43","modified_gmt":"2014-06-19T16:19:43","slug":"properly-setting-your-trading-goals-to-lower-stress","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/properly-setting-your-trading-goals-to-lower-stress","title":{"rendered":"Properly Setting Your Trading Goals to Lower Stress"},"content":{"rendered":"

As traders we often set some sort of performance \u201cgoals\u201d. We might say something like \u201cMy goal is to make $5000 per month trading\u201d.<\/p>\n

There are problems with that goal, the biggest problem being that we don\u2019t actually have control over how much money we make in any given trade. We might have a lot of influence on how much we make. We could utilize a variety of resources such as a good trading plan and proper position sizing but ultimately the underlying asset has to do certain things in order for us to reach our goal. Things we cannot predict and things that we have no control over. Therefore, we do not have full control over the outcome.<\/p>\n

So here\u2019s the problem. When you properly set a goal followed by reinforcement with emotion and repetition, your unconscious mind takes this as a command from an authority figure and instantly goes to work on achieving that goal. And as it does, if you are not in control of that outcome, it eventually realizes this and you become extremely stressed.<\/p>\n

To put it in perspective, can you imagine being given a command or goal from an authority figure that you must achieve, or else\u2026 and then finding out that you have no control over the outcome? How would you feel, uneasy, stressed out, a lack of confidence, like there is something wrong with you?<\/p>\n

What if you told a child that they had to forecast the weather for next week and if the were wrong, that meant they were stupid and they\u2019d lose their favorite toy? How do you think they\u2019d feel? Wouldn\u2019t they feel the same way?<\/p>\n

Considering this, how do you expect to feel when you demand a result from yourself that you have no control over? Wouldn\u2019t you feel the same way? Why would you do this to yourself?<\/p>\n

Isn\u2019t it much better to realize that \u201cincome\u201d goal for what it is?<\/p>\n

You see making a certain income from a trade isn\u2019t really a goal; it\u2019s more like a possibility. A possibility that may be very realistic and achievable if things go your way but may also be very unrealistic when certain events occur that are beyond your control.<\/p>\n

A better way is to look at your target profit is as a \u201cpossibility\u201d and then set up achievable supporting goals that are <\/strong>under your control to maximize your chances of that possibility happening.<\/p>\n

For example:<\/p>\n

Possibility:<\/p>\n