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