Setting Financial Goals is One of the Four Keys to Successful Stock Investing For Beginners is one of the greatest posts about Stock Investment. There are many posts on the web that discuss Stock Investment, Setting Financial Goals is One of the Four Keys to Successful Stock Investing For Beginners certainly one of which we suggest for you. Hopefully the posts that individuals convey below could be useful, improve knowledge and be a option for you.
It is an unpleasant fact of life that a large number of stock market beginners fail in the market within the first six to twenty-four months.
Buying and selling stocks is easy. Now-a-days, all you need is a computer, internet connection and a discount broker account to get started. But to actually make money from the stock market is far from easy. It takes years of hard work, dedication, persistence and a never ending willingness to learn. Making money consistently in the stock market over the long term is not simple, but it sure is one of the most satisfying past times.
To be a profitable stock investor you need to master the four keys to success:
1. You need to have a clear understanding of yourself. You need to clearly define your financial goals, your risk profile, develop a sound understanding of your mental make-up (psychology) and specific strengths and weakness.
2. You must develop a solid foundation of knowledge about the economy, stock market and stocks in general.
3. You need to work on a trading or investment strategy that suits YOU. The investment strategy must take into consideration all the elements you identified about yourself in step one. The key to long term success is to find a stock strategy that suits your personality, your strengths and your weaknesses.
4. Finally, you need to gain a level of market experience. Unfortunately there is no short cut to this, it just comes with time. However, finding a suitable mentor can certainly fast track this process.
The starting point for ensuing you are on the right path to success is to develop an understanding of yourself. This includes your goals, risk tolerance, strengths and weaknesses. The process of self analysis from an investment (or trading) perspective starts with the task of determining your financial goals (i.e. what do you actually want to achieve from investing).
This may sound boring, but to have any chance of achieving sustained financial success, it is vital that you identify your financial goals. A written set of financial goals should be seen as your financial ‘roadmap’ to success. This ‘road map’ will become an important resource in assisting you to create long term wealth. It should include personal development, lifestyle and monetary objectives (goals).
The simplest way to create a financial roadmap is to ask yourself, “What am I trying to achieve through ………….?” For example, “What am I trying to achieve through investing (or trading) in the stock market?” Or, “What do I need to change or improve in myself to be a successful investor (trader)?”
Remember, it is important that you identify the underlying reason for wanting to create wealth.
This is important because it is the underlying reason (or motivating force) behind why you want to create wealth that will motivate you when times get tough. It will help you refocus when you experience a string of loses in the stock market.
To help you identify the underlying reasons why you want financial success, I suggest that you avoid answers like “because I want lots of money” or “because I want to be rich”. These answers do not go to the heart of what you actually want to achieve.
Ask yourself why you really want to achieve wealth. It may be because you want financial security or it may be to gain the freedom to do what you want, when you want. Whatever your reasons make sure you focus on the why.
So, take the time to establish your financial (including: personal, lifestyle and monetary) goals for the next 12 months, 5 years, and 10 years.
Having clearly defined financial goals is a great motivator when trying to achieving long term wealth. If you have clearly defined goals you will be more likely to remain focused and if you remain focused, you are much more likely to reach your desired goals.
It is essential to remember that this is not a final list. Setting goals should be an on going exercise. You should get into a habit of reviewing and fine tuning your goals on a regular basis. You should also ‘benchmark’ your achievements against your set goals on a regular basis to ensure you are still on the right track. If you find yourself straying from your goals, assess why and make the appropriate corrections as required.
The key is to be constantly reviewing, assessing and re-adjusting your actions to ensure you remain focused on achieving your financial goals. Once you have a set of goals, the next step is to take action towards achieving those goals. Goals amount to nothing if you don not take the necessary actions.
Pick one and start working towards it today. Break the goal down into small tasks. Aim to take at least one action a week towards achieving the goal. It might be to open a savings account and start saving. Or it might be to increase your knowledge in an area of finance you are unsure of. What ever the financial goal, take a small step towards achieving it on a regular basis.
By better understanding yourself and your goals, you are better placed to devise a stock market strategy that is suited to you. This will greatly increase your chances of success over the long term.
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