Start Stock Market Trading
How to Set Stock Trading Goals

Start Stock Market Trading
3 Questions to Ask For Stock Trading Goal Setting

Many traders forget to set specific stock trading goal before they trade, and this is the most common reason why many stock traders went broke. They know the importance of having the goals but don’t know the effect trading without them.

As a result, they’ll follow the crowd and make the same mistakes over and over and over again… ever again…

Answer these 3 questions and you’ll be in a better trading position.

Start Stock Market Trading by Asking Yourself,
How much money you want to make?

Obviously, as much as possible!
But that just don’t make it.

You need to be more specific,
or would I say,
as specific as your head can think!

1. You can set goal of doubling your money every single day (though nothing is impossible in this world, but this can be way too much!),
2. 1000 per cent return per year (hey, if you can do it, let me know. I’ll give all my saving to you man…) or
3. 15 per cent annually (aha, now I know it is not that easy to trade for a living).

I know 15 per cent is not impressive enough, but don’t push yourself too hard in the beginning. Focus on learning the trade first and the money will follow later.

Start Stock Market Trading by Asking Yourself,
How much money you have?

Do you think $1,000 is good enough?
I don’t think so.
But that doesn’t mean you can waste it for new iPod than investing.

I bet you have heard “there is no such thing as FREE lunch” right? Unfortunately, the same holds true for stock trading. You need money to pay stock broker (or online stock trading for cheaper option) and keep yourself alive whenever the stock market turns bad. For this reason, trade with something you can afford to lose first.

So, how much is enough?

Other traders can have different view, but I believe you need $30,000 as the initial capital. In fact, some expert traders don’t trade if they don’t have $200,000 to get started. Thank god it is not $2 million!

Do you know why they insist $200,000 as a start?

To them (and also to you), stock trading is a business, where you need to invest in newsletter, stock trading software and stock trading tool to reduce the risk of losing money.

The truth is, you can have flexible stock trading strategies, effective stop loss implementation and efficient money allocation for better risk management with that amount of money.

Don’t have $30,000?
Don’t trade the stocks then.
I repeat, don’t trade the stocks then.

It is not my intention to stop you from trading stocks but you have nowhere to go with $1000. Believe me, you can’t stop your emotion from holding your trading rational with that kind of money.

My suggestion is stop watching movies to save more money. While accumulating the money, learn how to trade stock professionally.

Start Stock Market Trading by Asking Yourself,
How much time you have?

There are full time and part time stock traders.
Which describes you best?
Do you have full time job?

As you read this article, most probably you are looking for part time stock trading job. If you do, your stock trading strategies can be different from full time stock traders. However, that does not mean you will be making less money than them, ok.

If you have profitable stock trading system that has high probability of success, you will make more money than the full time trader for sure.

Defining who you are is the most critical component at the initial stage. You’ll find the rest much easier if you get this right in the first place.

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