Setting financial goals is one of the four keys to successful stock investing for beginners.

It is an unpleasant fact of life that a large number of stock market beginners fail in the market within the first six to twenty-four months.

Buying and selling stocks is easy. Today, all you need is a computer, Internet connection, and a discount broker account to get started. But making money in the stock market is far from easy. It takes years of hard work, dedication, persistence, and a never-ending willingness to learn. Consistently making money in the stock market over the long term is not simple, but it sure is one of the most satisfying past times.

To be a profitable stock investor, you must master the four keys to success:
1. You need to have a clear understanding of yourself. You need to clearly define your financial goals, your risk profile, develop a solid understanding of your mindset (psychology) and specific strengths and weaknesses.
2. You must develop a solid foundation of knowledge about economics, the stock market and stocks in general.
3. You need to work on a trading or investment strategy that suits YOU. The investment strategy should take into account all the elements that you identify about yourself in the first step. The key to long-term success is finding a stock strategy that fits your personality, your strengths, and your weaknesses.
4. Finally, you need to gain a level of experience in the market. Unfortunately, there is no shortcut to this, it just comes with time. However, finding a suitable mentor can certainly speed up this process.

goal setting
The starting point in making sure you’re on the right path to success is to develop an understanding of yourself. This includes your goals, risk tolerance, strengths, and weaknesses. The process of self-examination from an investing (or trading) perspective begins with the task of determining your financial goals (ie, what it is you really want to achieve by investing).

This may sound boring, but to have any chance of sustained financial success, it’s critical that you identify your financial goals. A written set of financial goals should be viewed as your financial ‘road map’ to success. This ‘road map’ will become an important resource in helping you create long-term wealth. It should include personal development, lifestyle, and monetary objectives (goals).

The easiest way to create a financial roadmap is to ask yourself, “What am I trying to accomplish through ………….?” For example, “What am I trying to achieve by investing (or trading) in the stock market?” However, “What do I need to change or improve in myself to be a successful investor (trader)?”

Remember, it is important that you identify the underlying reason for wanting to build wealth.

This is important because it is the underlying reason (or motivating force) behind why you want to build wealth that will motivate you when times get tough. It will help you refocus when you experience a series of losses in the stock market.

To help you identify the underlying reasons why you want to be financially successful, I suggest you avoid answers like “because I want a lot of money” or “because I want to be rich.” These answers don’t go to the heart of what you really want to achieve.

Ask yourself why you really want to achieve wealth. It may be because you want financial security, or it may be to gain the freedom to do what you want, when you want. Whatever your reasons, be sure to focus on why.

So, take the time to set your financial goals (including: personal, lifestyle, and money) for the next 12 months, 5 years, and 10 years.

Having clearly defined financial goals is a great motivator when it comes to achieving long-term wealth. If you have clearly defined goals, you’ll be more likely to stay focused, and if you stay focused, you’re much more likely to achieve your desired goals.

It is essential to remember that this is not a definitive list. Setting goals should be an ongoing exercise. You should get in the habit of regularly reviewing and adjusting your goals. You should also ‘check’ your achievements against your set goals on a regular basis to make sure you’re still on track. If you find yourself falling short of your goals, assess why and make appropriate corrections as needed.

The key is to constantly review, evaluate, and readjust your actions to make sure you stay focused on reaching your financial goals. Once you have a set of goals, the next step is to take action to achieve those goals. Goals are useless if you don’t take the necessary steps.

Choose one and start working towards it today. Divide the goal into small tasks. Try to take at least one action a week to achieve the goal. It could be to open a savings account and start saving. Or it could be to increase your knowledge in an area of ​​finance that you are not sure about. Whatever your financial goal, take one small step toward achieving it on a regular basis.

By better understanding yourself and your goals, you’ll be better positioned to change a stock market strategy that suits your needs. This will greatly increase your chances of long-term success.