Short-term goals: to develop and implement a swing trading
Intermediate-term goals: to become profitable via swing trading
Long-term goals: to generate a consistent yearly income via
and Personal Goals
do I want to be a trader?
I want to be a trader because I
cherish the independence of working on my own. While my
current job provides some independence, I will never achieve
the level of independence I desire at my company. I also
question whether I truly want to surround myself with so many
people. Trading would permit a solitude I have come to enjoy.
Trading is also detailed-oriented without overlooking the need
to attend to the big picture. It takes discipline and a
well-planned and well-executed system to make it succeed. It
thus suits my personality. If successful, I will be able to
pursue my other life interests on my own terms. If successful,
I will be able to meet the short-, intermediate-, and
long-term goals listed above. There will also be the
satisfaction that I have succeeded in an endeavor where so
many others have not, and the satisfaction I will have from
knowing others know I have done so.
I also want to be a trader in order to
supplement the income from my current job.
type of trader will I be?
I will be a technical trader. Moreover, I
will be a discretionary trader. This is because I want to make
the final decision of how and what I will trade. In other
words, I will not turn things over completely to a fully
automated, rule-based computer program. This will remind me
how I am the one ultimately responsible for my trades. I will
be a swing trader, holding trades over a period of days to
weeks, with an average of 1-4 days. Day trading and scalping
are not for me, as I am not aggressive but financially
conservative and relatively risk-averse.
In general, I will always strive to be
disciplined trader. I will adhere to and faithfully execute my
trading system which I have planned in detail and thoroughly
tested to be profitable.
are my strengths and weaknesses, and how can they be
One strength I have is that I am
detailed and strive to be exact. But this can also be a
weakness since it often leads to obsessive, repetitive
behavior and prevents me from making a final move. This
final move I even dangerously rush at times because I get
frustrated with my inability to act. Another strength I
have is that I am a logical planner and always do thorough
research. But a weakness is that I cannot stand to lose my
hard-earned money. This has its costs. While trading, I
sometimes want to remain in a losing trade longer than I
should, irrationally hoping against hope that the losses
will magically turn into profits.
I can leverage my strengthens by
recognizing how these attributes contribute to my
confidence that I am on the right path of becoming
consistently profitable. I can minimize the damage of my
weaknesses by taking a final moment to calmly review my
order one last time, ignoring which way the stock price is
currently heading. Once assured that my order has been
entered correctly, I will count to
three and then confidently hit the buy/sell button. I will
also always trade with a stop-loss order in place. Since
this automates my exit, it relieves me from actually
having to hit the sell button. But it still satisfies my
desire to be a discretionary trader since I was the one
who originally calculated where the stop-loss should go.
I emotionally stable enough to handle the stress of
I will remain calm, cool, and collected at
all times while trading. I will only trade when distractions
are at a minimum, and when I am not overly tired or upset. I
will either maintain a proper level of professionalism and
rigorously adhere to my trading system, or I will forgo
trading until I achieve a state of mind free from the danger
of making reckless, emotionally-driven trades.
What are my financial
In the short-term, I am targeting a return
of 20% in the first 6 months. Assuming an initial trading
account of $10,000, this is a return of $2,000. Roughly, this
equates to $333/mth, $77/wk and $16/day (assuming 21
trading days per month
). During this same period, the
drawdown on my account shall not exceed 10% or $1,000.
In the long-term, the targets are the same,
but on a larger amount than the $10,000 initially used to
confirm my trading system is truly profitable.
What are my yearly trading goals?
By this time next year, I will have become
proficient in reading charts for trading opportunities and be
able to easily apply my strategy to them. I will know my
trading system inside and out. I will also develop at least
two additional winning strategies.
What are my monthly trading goals?
To be consistently profitable. This will be
possible because I will review my performance against my
financial targets on a weekly and monthly basis. I will also
study the trading strategies of successful traders in order to
develop my own unique strategies. I will then thoroughly
backtest and paper trade these strategies before committing
real money. I will also study classic stock market theory for
eight hours or more. I will also look for patterns in the
daily entries of my trading journal.
What are my weekly trading goals?
To trade every day the markets are open.
Because my trade exits will be automatic, most of my time will
be spent seeking out new trading opportunities. I will only
trade those stocks which best meet my selection criteria.
What are my daily trading goals?
To make sure I am up at least one hour
before markets open. To monitor and reassess my open
positions. To review and update my watch list with new
potentials. To get a sense for the general direction of the
stock market as a whole. To
new trading opportunities. To execute trades according to my
trading strategy because I know it is detailed and tested to
be profitable. By strictly adhering to it each and every day,
I will ensure my weekly, monthly and annual goals are met.
This can only be done if I dampen my emotions and trade
objectively and with the utmost professionalism. To work no
longer than three hours after markets close. To update my
trading logs, to make a trading journal entry, and to
generally prepare for the following trading day.