Stock Trading Tutorial: Setting Goals

This stock trading tutorial takes a slight departure from the standard mechanics of how stock trading actually works.  I’d like to dive into a little bit of the mental side of stock trading.  Once you have read through the basics on how to trade stocks, you can begin to formulate your goals for your personal stock trading.  Having a well defined goal is essential in any pursuit, and that is especially true for day trading.

This will be an easy stock trading tutorial to understand, but a much harder one to implement.  Balancing your effort in learning the stock market with your practice to make more money is never an easy task.  I hope we can set you down the right path so you have the tools to set realistic goals for yourself.

The first key to setting effective goals is to strive for something you have control over.  What I mean by that is to set a goal for yourself that you can accomplish no matter how the market happens to pan out.  Set up a goal to practice stock trading for so many hours a day.  Set up a goal to read about X number of trading strategies every week.  Set a goal to observe the price action of the stock market for the first half hour of the day so many times a month.  These are the types of goals that you can accomplish without ever having to make a profitable trade.  While meeting these goals will not directly put money in your pocket, they will almost certainly increase your understanding of the stock market.

Becoming a stock trader takes more than just reading a solid stock market tutorial (although we think it helps quite a bit!).  It takes a dedication to continuing your education as a trader.  It takes a certain discipline to practice different techniques, and an open mind to learn from those mistakes.  I suggest that everyone have a practice stock account that they can test out these new strategies.  This practice account can either be a paper money account or an account that you fund knowing it may not be the most profitable.  If you can treat a paper money account exactly how you would treat your own money then that is the much less expensive (and just as effective) option.

If you can find a way to motivate yourself to learn more about the stock market, you can’t help but to become more advanced in your stock trading.  One word of caution here:  if you are only reading and watching new strategies you will not learn nearly as fast.  Stock trading takes real world experience.  With the availability of practice stock trading software, there is no reason not to get your hands dirty.  I hope everyone will join me in setting specific goals for their stock trading endeavors.  If you have anything that you’d like to share with other readers feel free to leave your stock trading goals in the comments.

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