Checking On Your Trading Goals
Goal setting is an important aspect before someone starts a new endeavor. In every activity, it is a vital aspect to think about the whole matter first before jumping into something that you lack understanding. This post believes that when you started to start trading you have set your specific trading goals. Since the first half of the year has already lapsed, it is best if you check on your trading goals that you made at the start of the year and how are you doing with respect to your set goals.
- Assess your trading performance.
You would not know if there have been changes if you would not compare your past and present trading skills. It is advisable that you look back and based on your stats, you have to know whether you are able to meet the kind of performance you promise yourself at the start of the year.
It is not enough that you do your best in things you do. What matters is that you are consistently doing your best as you execute the complete trading process from the market analysis stage to the conduct of review and adjustment processes.
Moreover, when you are talking about trading performance, the psychology part in an investor is also included. Be true to yourself and acknowledge which issue has affected your trading performance a lot and be ready to make changes about it.
- Review the factors that swayed you to do the particular trade.
After learning the important points where you can further improve on, you also have to identify the factors that influenced you in making your trades. There are a number of interpretations and forecasts that you were able to make - check what made the interpretations and forecasts wrong if you got a loss in that particular area.
Nevertheless, it is also prudent to check the correct interpretations and forecasts that you have made and analyze them further.
- Formulate your plans and adjustments for the last half of the year.
Based on your analysis, you can always make adjustments on your trading goals and strategies. If you are failing in a certain area, such as your risk management practices, you can aim to further improve on this by employing a new or a different strategy as well as changing your market behavior.
If you are thinking about trying a whole lot different approach, you may feel free to do so. However, before making any change, you have to scrutinize thoroughly your plans so as not to add more damage to your hurting portfolio.
Checking on your trading goals must not only be done on a semi-annual basis. You can always check on your trading goals anytime if you feel like something not right is happening to your portfolio and to your trades. The goal of checking your trading goals consistently is to help yourself get back on track and be consistent on making profits, rather than acquiring losses.
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