As I taught a Step 1 class this past weekend, I used a few “work tools” that I thought might be useful for our students. In my old job all performance targets were required to be measurable.
The “measurable” test:
As I interviewed Top Guns (TG’s) we discussed their time for education and their goals. The time commitments for the 10+ TG’s I spoke with ranged from 2 hours a week to 15 hours a week and their financial goals ranged from $200 a month to $20,000 a month. Firstly, I will admit the goals were long term goals and the hour commitments were short term commitments, however, from those two questions, I took the $ monetary goals and divided it by the hour commitments they were making to see what it revealed.
Based on the future financial targets and the current hours dedicated, I found our students were targeting to make from $8.33 per hour trading to $500 per hour trading. Again, the questions were separated so no-one was thinking about it as "this is what I expect to make an hour." What this showed me is that some goals were “too easy” and some were “quite hard”. (I have 4 hours a week to study but want to be making $20,000 a month within a few years starting with $3000 in my trading account).
The math: 4 hours a week = 16 hours a month to make $20,000/16hrs= $1250/hr. There are traders that make this and way more, but ask yourself if this sounds reasonable based on what you know today and what you expect this 4 hours a week to do for you over the next 3-5 years. Maybe compare it to what education you had to get your current job and what you make today at it.
1. Set a goal of an amount you want to make trading:
2. Make a work schedule each week and go to work according to that schedule
3. Use an app like Timetracker (free) to clock in an out of your trading work (treat it like a real job)
4. Hold yourself accountable (or ask a friend or spouse to review your timesheets vs. schedule) to hold you accountable to get your hours in each week. (turn off the TV?)
5. Track what happens as you consistently spend time each week, training and trading (the and trading part is important) Don’t be the student who comes up and complains that they have not made any money since they started 4 years ago, but, has never made a trade. The trade part is how we have the potential to make money.
6. Define tasks to complete each day (example. plan to spend 30 min on review of Home study courses, 30 min reviewing stock picks and 15 min to develop an action plan (with up and down stock picks) for the next good trading opportunity etc.)
7. Increase your time commitment or get more coaching or education to gain understanding. This is especially importnant if your efforts are not giving you the results you want. Just as those with a masters degree generally make more than the person with a bachelors degree, those with more tools, experience and education in stock trading generally have more potential and better results than those with less education.
8. Look forward to the day that the hours you spend trading net you more than your current employment or second income source. Maybe you can bring a spouse home from work or become your own boss one day.
This challenge could help you see weekly progress and set more realistic goals. The TRADEway system is full of potential. Get out there, leverage what you know, expand your knowledge, and trade when the market tone is right!