What is Your Trading “Intention”?

Each time I go to my yoga class the instructor has a word of the day, and I wanted to apply that to options education. The word of the day is intention. The dictionary defines “intention” as an aim, a plan or a purpose.

While naturally many people would think, well my intention is to make money. I think through lack of planning many people lose sight of their trading intention. Let’s take a look at what should go into our trading intention.

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Trading Goals

Besides learning different strategies to utilize, the first thing we need to do is determine a long-term trading goal.

Where do we want our trading success to take us, is our goal to have a monthly income stream? Or a nest egg to retire with?

Of course these goals could be simultaneous. Whichever goal you choose it’s important to keep a record of your trading results and where you are at on your path to your intention.

Trading records should be looked at daily, monthly, quarterly and yearly to give us an overall view of whether or not our current plan is working. This will give us a chance to make adjustments in our trading plan in a timely manner if need be.

Setting Realistic Goals

When we set our original trading goals it is important to be realistic. If your goal for instance is to make $2000 per month and you are trading with $10,000 we must look at how realistic that is. In my experience if you can follow a good trading plan, you should be able to generate 3 to 7% a month on average with your option trading.

A more realistic goal might be $500 per month on a $10,000 account. The lower the percentage of return on your capital that you need the easier it will be to reach your goals, But having realistic goals of your capital is key.

Allocating Assets

Lastly, you have to allocate your assets properly with your trading goal and intention in mind. What strategies am I going to trade and when? What role will volatility in the markets and in the trading vehicles I utilize play in my planning and success?

All of the above must be in focus and on your mind and constantly reevaluated for you to achieve your trading goals.

Mark Fenton


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