As of 05/26/2020
  Indus: 24,995 +529.95 +2.2%  
  Trans: 8,896 +425.52 +5.0%  
  Utils: 769 +5.10 +0.7%  
  Nasdaq: 9,340 +15.63 +0.2%  
  S&P 500: 2,992 +36.32 +1.2%  
YTD
-12.4%  
-18.4%  
-12.5%  
 +4.1%  
-7.4%  
  Targets    Overview: 05/13/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Down arrow700 or 800 by 06/01/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,100 or 2,650 by 06/01/2020
CPI (updated daily): Arrows on 5/15/20
As of 05/26/2020
  Indus: 24,995 +529.95 +2.2%  
  Trans: 8,896 +425.52 +5.0%  
  Utils: 769 +5.10 +0.7%  
  Nasdaq: 9,340 +15.63 +0.2%  
  S&P 500: 2,992 +36.32 +1.2%  
YTD
-12.4%  
-18.4%  
-12.5%  
 +4.1%  
-7.4%  
  Targets    Overview: 05/13/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Down arrow700 or 800 by 06/01/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,100 or 2,650 by 06/01/2020
CPI (updated daily): Arrows on 5/15/20

Bulkowski on Setting Trading Goals

 

Basket Case Bob
Setting Goals
Go The Distance
See Also

 

Setting Trading Goals: Basket Case Bob

I received an email from a person I will call Basket Case Bob which said he would grow his brokerage account from $15,000 to $25,000 in about 6 weeks. The markets were kind to him and he accomplished his goal a few days ahead of schedule. He moved more money into his brokerage account to build it up to $50,000. His new goal? $100,000 by the end of this year. I think that will be difficult to reach because it is a goal that only 4% of traders meet. Basket Case Bob is not a seasoned trader. In fact, he started trading a few months ago, and he has a full time job, too, but his timing is impeccable.

How did he nearly double his money? He loves the low cost and volatile insurance and bank stocks. He sets a buy order about 15% to 20% below the prior close and sells when price rises 30%. Such a bounce has often taken less than a week in the recent market turmoil. What does he do if the stock drops? His strategy changes from a swing trade to "buy and hold." Yes, it's not a good strategy when things go bad. In fact, he really doesn't have a good exit strategy at all.

What is admirable about him is that he has a goal of doubling his money by year end. How many of you have set a goal?

Setting Trading Goals

Setting a goal and planning how to achieve it can help traders push past their fears. Basket Case Bob is an example. He learned from his mistakes. He studied both winning and losing trades to understand what went right and how he could improve on his technique. Over time, he was able to improve his trading, adapt his technique, and refine his trading setups. He discovered new setups, new methods, and new ideas that helped propel him on his journey to his goal.

I know that when I set a goal, I spend more time on a project and accomplish more during that time. I am more productive.

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Setting Trading Goals: Go The Distance

Just setting a financial goal is not enough. You have to figure out how to achieve it. Here are some ideas.

I was burned by buying stocks as the market sank during the slide in 2008. When price bottomed in March 2009, I was unwilling to believe that the turn had come. However, I pushed past my fear of losing by downsizing my positions to one-fourth their normal size and buying. I bought several stocks within a week of the bottom and now, two months later, those position are still paying dividends (it helps because many were utility stocks).

With new positions I have added, I want to triple my money in less than three years. That is my goal. On Conseco, I doubled my money in a week, so I know it is possible. I just have to remain focused on my goal and trade opportunities as they become available.

Perhaps we can profit together. Set a goal and strive to get there then join me on the walk to the bank.

This article was based on an idea from "Promising the result" by Kiev as published in the May 1995 issue of Technical Analysis of Stocks & Commodities magazine.

-- Thomas Bulkowski

Top of page

See Also

 

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