Saturday, March 28, 2009

The Importance of Daily Trading Goals

Major props to the excellent traders and management at Kershner Trading, who were willing to spend a Saturday with me to work on their performance.

One very simple topic I discussed with the newer traders was having a concrete goal for each day of trading and a way of reviewing your performance at the end of the day to see if you reached your goal.

Setting a goal each day creates learning loops that improve you significantly over time.

Setting daily goals also keeps your head in the game, reinforcing your positive learning even during days and weeks where you're not making money.

Day after day of setting and reaching goals builds confidence and helps you internalize a sense of competence.

If you don't have goals and specific areas of performance you're working on, with concrete feedback to tell you how you're doing, how will you get to that next level of performance?

It's amazing how small changes compound into large ones when they become part of your daily experience.
.

4 comments:

IDkit aka Ana said...

I echo what you said earlier in your post:
Quote:
Your challenge as a trader is to structure each trading day so that you can experience yourself as a winner, even when you happen to lose money.Unquote

This is probably the best definition of being a hero to oneself.

JDMoodie said...

I decided to only have daily goals. I have a spreadsheet that reflects how those daily goals, if achieved consistantly including some missed days and drawdowns for realism, add up.

I would choke if I said "this is where I want to be in a month or a year", but I see how easy it is to just reach today's goal and I realize how easy it is to reach the longer term goals.

I especially like beating my daily goal early but sometimes find it hard to stop as I feel that I am on a roll and get cocky...and we all know where that leads.

Jeff.

MellowYellow said...

Great presentation Brett! We were lucky to have you.

Brett Steenbarger, Ph.D. said...

Thanks Mellow Yellow; great to meet the Austin crew--

Brett