Making 2023 Your Best Trading Year Yet
One goal-setting technique and how it can have a profound impact on your performance in 2023.
Happy New Year!
There’s no better way to reign in the new year than by sitting down and taking a hard look at your goals. Every success I’ve had in my life has stemmed from planning and goal setting – and I imagine this is the same for you.
With this in mind, I wanted to share my favorite goal-setting model and how you can apply it to push the limits of your capabilities:
S - Specific
What specific trading goals are you looking to achieve in 2023?
If you’re new to the market, is it learning about it? If so, what do you want to learn how to do specifically?
If you’re more experienced, is your goal to beat the market? If so, by how much? Which index will be your benchmark?
Personally, I am looking to double my average performance over the past 3 years (~40% average). This is specific.
M - Measurable
Can you measure the progress you are making toward the goal you set out for yourself?
In my case, I can easily measure progress by checking the performance of my weekly, monthly, and quarterly returns.
Breaking out my 1-year performance goal into measurable benchmarks throughout the year makes the goal more attainable.
A - Achievable
Realistically, how achievable is your goal?
I’ve found the most success in setting 3 levels of achievable goals when it comes to my performance.
Stretch Goals - on the very outer limits of achievable
My stretch goal for 2023 is to triple my average performance.
This would require a ~7% monthly average, which I have done before and can do again in the right market environments.
What does a stretch goal look like for you?
Big Goals - most things would have to go right, but more achievable
Big goals should be big enough to scare you but know that even if everything doesn’t go right, it’s still doable.
Expectation Goals - As it states, meet your previous average or expectations
This could look like meeting your average return for the year, or what a likely outcome looks like if you were to coast throughout the year.
R - Relevant
How relevant is your goal?
Does it make any sense with the current trend of your performance, desires, daily actions, etc?
This is one of the most important steps - if your goal lacks relevancy, there is a higher likelihood of failure because the outcome doesn’t matter to you.
T - Time-bound
Adding a time frame in which you want to accomplish a goal is a must.
A deadline will hold you accountable and keep you at the top of your game.
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Start your year on the right track by setting hard but achievable goals for yourself.
This is the only way you’ll start to level up and challenge the limits of your full potential in the stock market.
Here is a pretty phenomenal document on everything you need to know about SMART Goals by the University of California:
Weekly Market Recap & Looking to 2023:
The new year is upon us (Monday is a holiday by the way!) and the action this week was rather muted.
Let’s review the indexes, my favorite scan this weekend, and then some strong charts (it’s all wrapped up in a video walkthrough at the end!):
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