| Most share market investors think making | | | | 10% of people commit to actually |
| money from shares is simply a matter of | | | | crystallising their goals by writing them |
| buying them. That's why they listen to other | | | | down? And only a further 3% of these people |
| people (who are supposed to be more expert | | | | actually review their goals! So, given these |
| and more experienced than themselves). They | | | | statistics, is it any wonder that only a |
| listen to share brokers, financial advisers, | | | | small percentage of traders and investors are |
| financial journalists, financial | | | | successful? It would seem that many traders |
| entertainers, share market newsletter | | | | do not have effective goals in place for |
| authors, economic forecasters and a plethora | | | | their trading, after all, how specific is |
| of others. What's worse is that they listen | | | | "make money"? |
| to non-experts like friends, business | | | | |
| associates, relatives and who knows who else. | | | | Your trading goals should take on a long-term |
| | | | view, as trading is a long-term process. |
| Why would intelligent people do this? Because | | | | |
| they are responding to the very simple desire | | | | Many plans can be repeatedly implemented for |
| to make money and grow their wealth. There is | | | | years-and-years. This takes the focus away |
| nothing wrong with that. But they are also | | | | from any one individual trade, as the results |
| responding to a few other emotions like | | | | are insignificant to your overall trading |
| laziness, greed, wanting quick answers and | | | | approach. A losing trade doesn't have to |
| other perfectly normal human factors. | | | | reflect negatively on your trading goals but |
| | | | can still be a success when considered from |
| Well, unfortunately, this approach of using | | | | the viewpoint of the other measures |
| others' advice only works on rare occasions. | | | | mentioned. |
| A lot of the time, the shares are bought and | | | | |
| the result ends up as a loss. Most people do | | | | This concept may sound revolutionary to |
| not realize that you only make money when you | | | | inexperienced traders, but market veterans |
| sell shares, not when you buy them. How often | | | | have learnt not to take any one, two, three |
| do these trusted advisers or non-experts come | | | | weeks or even the last months trading results |
| back and tell you that it is now the right | | | | to heart. This works both for losing and |
| time to sell the shares that they told you | | | | winning trades, which is helpful in |
| about last month? | | | | overcoming the usual highs and lows |
| | | | associated with swings in winning and losing |
| Interestingly, some people just seem to | | | | trades. Successful trading is the result of |
| achieve more of their goals more often than | | | | an ongoing approach. And, of course, the best |
| others. | | | | guarantee available is your own successful |
| | | | track record. |
| Did you know that it is estimated that only | | | | |