Defining My 2008 Trading Goals and Resolutions

This is taken directly from the Option Addict:

Speaking of which, it might sound corny…but I am a big believer in setting personal goals and resolutions each year. If you haven’t done this already, spend a small amount of time over the weekend thinking it over. Make sure that you dedicate at least 5 specific trading goals. Don’t create a bunch of generic crap like…

I want to make as much money as possible…

I want to read two books that will make me a better trader…

I want to create better trading rules…

Be specific. Challenge yourself. More importantly; be realistic.

Since I found his blog back in November, I’ve become much more focused and have actually made some headway into profiting from the markets. In the three days I’ve traded this year, I’m up $250 on what started as an $1800 for the year. That’s approximately 15% so far in just three days. But in any event, here’s what I’ve come up so far in terms of resolutions and goals for the new year:

  1. I’d like to try and double my current account balance ($1800). The current account balance is small so I don’t think it will be too much of an issue. I may have to take an extra risk here or there but I think it’s achievable.
  2. Grow my deposited balance to $10,000. As much as I’d want to think I could turn a 500% profit in a year, I won’t have $10,000 in my account solely by trading (now if I do, I’m quitting school tomorrow and doing this full time!). I would like to save up enough money during the year to bring my account balance to $10,000 if possible.
  3. This may sound generic, but I need to stick to my rules and become more disciplined. I didn’t have a great start to the year with this resolution and it did cost me. A few days ago I posted a nasty downturn in Mastercard (MA). Had I closed the position when it fell below my line in the sand, not only would I have not taken a $300 hit on Friday’s horrible action, but I would have had more funds available to short other positions which were profitable and perhaps be up more than 15% so far on my account. My puts on Friday brought in $400. Add that to the $300 UNNECESSARY loss I took, and yesterday would have been the single biggest gain since my lucky strike with EMC Corp. (EMC) back in September 2007.
  4. Finish my reading resources! I really need to finish Murphy’s Technical Analysis text as soon as possible. Too many nuggets of information in there to pass up on. I’d also like to read Trading Rules that Work: The 28 Lessons Every Trader Must Master, by J. Jankovsky. The folks at Shadowtrader dot net have been reading excerpts from the book over the past few days and it appears to be a good and interesting read.
  5. Involve my fiancee in our finances and investments.  This will be the hardest task to complete only because she’s so adverse to having any sort of money in an investment.  She’s had a bad experience with family attempting to invest and seeing it backfire.  I’m sure I can get her to begin accepting the markets as a way to bring in extra income, and perhaps make it a way of life one day, but for now we’ll take baby steps.
  6. Improve my blogging habits.  I know I’ve been on a posting tear the past few days but you always find time when you have days off from work.  I know starting tomorrow my postings will become more spaced out since we start back to our routines but I’ll try my hardest to have at least 4 to 5 posts a week although I am enjoying throwing up 2, 3, or even 4 posts a day.

Have you made your goals and resolutions for the new year?  If so, I’d like to hear about it!  Drop me a line or a comment with some of your resolutions.  Have a great rest of your weekend and hopefully we’ll see the markets recover tomorrow (not like I care since I’m 80% cash, hah).

Jorge 6 January 2008 Portfolio Progress, Trading Strategies
Fast Money Stock Picks Market Breadth - January 7, 2008

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