Expectations: What Can You Achieve this Year?

Hello traders,

This is Nathan Tucci following up with my most recent article: The PLAN for Success in 2014

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We just finished our first session for this program. Week 1 was all about expectations and I want to discuss some of the important bullet points we mentioned in the live sessions today.

The most important thing we stressed today was that if you want to be successful this year, you must be committed to the process. The process of working one step at a time until you achieve goals. The process of making mistakes and learning from them.

This idea of following the process to become successful begs the question:

How do you define success?

Well, that is the question that definitely needs to be asked.

Most of the online gurus are telling you that successful trading means doubling your account every month, making millions of dollars and living the life of your dreams.

While all that sounds nice, that is NOT how you should be defining success. That is not how you should be setting your goals.

This is especially important because if you don’t have a reasonable standard of success, it is quite literally impossible to achieve success.

That means that you MUST define what success is for you in order to be successful this year.

Let me help…

If you lost money in 2013, your expectation and your goal should be to have a net profitable year in 2014. That’s it.

You shouldn’t be trying to double your account or make a million dollars. Setting an impossible goal like this will guarantee that you fail.

The problem with a lot of traders is that they would rather try to make a million dollars 5 years in a row and lose all 5 years, then to instead have a goal of being a break-even for 1 year, then 15%, then 25%, etc.

That is called building a successful trading business and most traders simply refuse to do it.

If you aren’t willing to adjust your expectations in order to start a successful process, we probably can’t help you.

If you are willing to do so, I believe this can be YOUR year!

We are going to be releasing articles every single week that deliver more content and give you information on the process to becoming profitable this year; but the first thing you need to do is set a goal.

We suggest that you write down your goal for this year on a physical piece of paper and put it on your computer screen.

So, if you were a losing trader in 2013, here is what we suggest writing down on a piece of paper:

“2014 Goal: End the year with my account (acct # 2312432) above its current balance of $2,345.00″

Something along those lines.

If that is your goal and your expectation, you are in a great place.

Why?

Because you won’t need to over-leverage, over-risk, or get emotional trying to reach some crazy goal. Once you adjust your expectations, it becomes a lot easier to trade reasonably., and again, we’ll get into this in more detail as the program continues in 2014.

For now, I want to leave you with this advice.

#1 Adjust your expectations

#2 Make a reasonable Goal and Write it Down

#3 Don’t forget it!

#4 Position yourself to succeed

But how do you position yourself to succeed?

Quite easy, actually.

All you have to do to be in position to reach the goal of being net profitable in 2014, is make sure that you don’t take major losses.

As long as you don’t take big hits and get into a big drawdown, you will always be in position to get BACK into net profit for the year.

Sure, it sounds simple, but the truth is 95% of traders refuse to do this!

If you would just say, “OK, I am only going to risk 10 bucks per trade to practice my trading for the first half of the year” you would be putting yourself in great position for a net profitable year.

Six months down the road, instead of being down 50%, you would be down a few hundred bucks at most (possibly break-even or profitable) which means that a few good trades or a nice winning streak would get you back to not profitable for 2014… Which IS your goal!

Now, obviously I have simplified this, but if traders could just grasp the concept of setting the right expectations and positioning themselves to do so, we would see a lot more successful investors.

We’d see many successful investors building from one year to the next, hitting one goal at a time and becoming wealthy later on down the road. And that is what we’d like you to do.

I hope this article sheds some light on what you can do in 2014! Feel free to post your Goal for this year in the comments below.

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NathanTucci

Nathan Tucci has been with Winner's Edge since 2011 as a writer and trader. He specializes in strategy development and enhancement and loves to share what he learns from testing, research and real world experience.
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  • NathanTucci

    Thanks Phoebe, always appreciate your kind feedback!

  • NathanTucci

    HI Mark, I do greatly appreciate your feedback. However, as Dave eluded to, I think your goal (if you do, in fact, mean 20% per month) is beyond reachable. We teach that your goal must be tied to an expected drawdown amount. Usually around 8 times your monthly return. Meaning you would have to expect a 160% drawdown with that goal, or in other words, you would have to EXPECT crashing your account. That is why these huge numbers are not reachable. I am not trying to be ignorant or put you down. but I think that if you want to have any kind of long term success, you would need to re-evaluate your goals and expectations. Just my thoughts, but do look forward to your reply.

  • NathanTucci

    That is awesome! And very well done on 2013!! .. What a great plan for your daughter, I really appreciate that long term thinking and vision! I wish you great luck in 2014 and I hope your daughter has a true inheritance from your hard work and discipline!!

  • NathanTucci

    Great response and great point. I really appreciate you sharing that!

  • NathanTucci

    HI Steven, thanks very much for the feedback. The goal for 2% a week is very aggressive, so I would suggest that it would take a lot of drawdown to achieve such a goal. Just my thoughts. I appreciate you chiming in.

  • NathanTucci

    Thanks, glad this was helpful!

  • NathanTucci

    Great goal, Dave, and I believe very achievable if you stick to the plan, use patience, control emotions, etc. All that fun stuff beyond just a strategy. The demo account should help you control those things, but sometimes makes you even more risky because it is fake money–need to trade it like it’s live. Thanks for the feedback!

  • Dave Hanna

    My goal for 2014 is to have at least 8 of the 12 months be net profitable by at least 1%. I don’t want to wait a full year for feedback, so I have some more immediate goals: In January, my goal is to grow my demo trading account, currently with a balance of $4,163, by net $50. I plan to do this by taking 10 trades, losing 1/2% (about $20) on 6 of the trades (minus $120), and winning four trades, averaging $42.50 per win (plus $170).
    For the year, I want to grow the balance in my demo account back to it’s starting value of $5,000, a gain of 20%. This means I need to average 1.5%/month, including averaging in my losing months.

  • Dave Hanna

    Mark, I’m just curious if you realize what you are saying. Growing your account by 20% in each and every month would multiply your account balance by almost 9 in 2014. I.e., it would mean transforming a $10,000 account into $89,000. By the end of the year. Do you think that is realistic? If so,what leads you to that conclusion? Not trying to rain on your parade, but the point of Nathan’s article was to make sure our goals are realistic.

  • aw

    now i”m using this technic. thanks nathan

  • Zachary Wylie

    This information is good food for thought. Thanks

  • Steven Perrott

    I plan to open two accounts and use one as my Resume Account with a goal of 2% per week and less than 5% DD. The other account I will push harder and make as much as I can. I also hope to fully automate my trading. Currently, I am semi-automated with a strong system that is heavy on risk management. With a track record I will work to trade for some funds but that may not be in 2014 and the work in this year will lead into more down the road.

  • Dlucky1

    Hi Nathan,Impressive, right on the nail.
    My goal for this year is to be more disciplined, and follow my plan. If in a year time, I can look back and have no , or little regrets, I’ll be grateful. Because,I know money and profits are the by products and rewards of a discipline trader..

  • sir2milo

    Hi Nathan, Hope your year is good. I made a increase/profit of 15% in 2013, that was a little better than I had hoped for. I had to work at it and read a lot. I am hoping to obtain another 12% this year. This account is for my daughter so hopefully it will be a good retirement plan as she nor her husband can touch it till she is 65 and she is 30 now and this was started when she was born. there have been some bad years but it has grown (compounded) most of the years. My broker has been with me from the gitgo.

  • MarkF

    My goal is to grow my account by 20% each month in 2014

  • Phoebe Ejimbe

    Thanks, Nathan! Very enlightening!