January 2, 2007

This week's free newsletter discusses something we should all be considering at the start of a new trading year: Setting Trading Goals.

The New Year is here!  That means a fresh start for us all, like it or not.  Maybe 2006 was a phenomenal year for you and you don't want to start over again!  Or maybe 2006 was a mediocre year and you're excited to have a clean slate.  Whichever it was, we're all back to square one and the past is behind us.

Starting over means that we need to establish some kind of rhythm in our trading once again.  That means it's important to hit some singles starting out.  This accomplishes two things:

First, it puts us in profitable territory.  That will increase our confidence and provide some room for error in case we're out of sync with the market and a little rusty from taking a trading break over the holidays.

Second, hitting singles will pad our accounts with some profits before we step up our trading size and profit objectives.  We only want to trade bigger when we're trading better, so starting with some singles helps us get off to a solid start before pressing things further.

Starting over also means that we need to redirect our focus on what it is we're trying to achieve.  That means setting some goals!  Goals are road maps which keep our efforts directed.  If we get off course, we'll know which way to correct if we have our goals nearby.

Setting goals will:

• Require us to raise our standards and expect more from our results

• Motivate us to work hard

• Strengthen our belief that we will get to where we want to be  (If you can see it and believe it, then you can achieve it).

Goals should be:

• Attainable - Be specific with what you want!

• Challenging - Stretch your comfort zone so that you can grow!

• Quantifiable - Know how you'll measure your progress!

When you set your goals for 2007, don't just focus on the results you want - be sure to include details on the process which you're going through to achieve those results.  It's one thing to say you want to make X thousand dollars this month, but it's another to pair that number with a quantifiable method of scanning and sorting stocks or a specific trading strategy.  Put your specific goals down with a specific plan for achieving them, and you'll be much better prepared for revisions later if necessary.

Once you've set your goals, monitor them regularly!  Write them out and sign them.  Tape them to the bathroom mirror or the side of your monitor - anywhere that you will see them on a regular basis to remind yourself what you're aiming for and where you're headed.

Finally, remember that the first goal in trading is always to protect what you already have!  Preserve your capital whenever in doubt, and 2007 may end up being your most profitable year yet!  Here's to many profitable trades in the New Year!

Start your Free Trial and reach higher goals in 2007!!

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Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com

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