| Most share market investors think making money | | | | people commit to actually crystallising their goals by |
| from shares is simply a matter of buying them. That's | | | | writing them down? And only a further 3% of these |
| why they listen to other people (who are supposed | | | | people actually review their goals! So, given these |
| to be more expert and more experienced than | | | | statistics, is it any wonder that only a small |
| themselves). They listen to share brokers, financial | | | | percentage of traders and investors are successful? |
| advisers, financial journalists, financial entertainers, | | | | It would seem that many traders do not have |
| share market newsletter authors, economic | | | | effective goals in place for their trading, after all, how |
| forecasters and a plethora of others. What's worse is | | | | specific is "make money"? |
| that they listen to non-experts like friends, business | | | | Your trading goals should take on a long-term view, |
| associates, relatives and who knows who else. | | | | as trading is a long-term process. |
| Why would intelligent people do this? Because they | | | | Many plans can be repeatedly implemented for |
| are responding to the very simple desire to make | | | | years-and-years. This takes the focus away from |
| money and grow their wealth. There is nothing | | | | any one individual trade, as the results are insignificant |
| wrong with that. But they are also responding to a | | | | to your overall trading approach. A losing trade |
| few other emotions like laziness, greed, wanting quick | | | | doesn't have to reflect negatively on your trading |
| answers and other perfectly normal human factors. | | | | goals but can still be a success when considered from |
| Well, unfortunately, this approach of using others' | | | | the viewpoint of the other measures mentioned. |
| advice only works on rare occasions. A lot of the | | | | This concept may sound revolutionary to |
| time, the shares are bought and the result ends up | | | | inexperienced traders, but market veterans have |
| as a loss. Most people do not realize that you only | | | | learnt not to take any one, two, three weeks or |
| make money when you sell shares, not when you | | | | even the last months trading results to heart. This |
| buy them. How often do these trusted advisers or | | | | works both for losing and winning trades, which is |
| non-experts come back and tell you that it is now | | | | helpful in overcoming the usual highs and lows |
| the right time to sell the shares that they told you | | | | associated with swings in winning and losing trades. |
| about last month? | | | | Successful trading is the result of an ongoing |
| Interestingly, some people just seem to achieve | | | | approach. And, of course, the best guarantee |
| more of their goals more often than others. | | | | available is your own successful track record. |
| Did you know that it is estimated that only 10% of | | | | |