A goal is a result you want to achieve. There is no point in doing something if it is not aimed at reaching a certain goal. Any objective should be well-determined; otherwise you may fail to achieve it. Today traders have good knowledge of management, which is very helpful in their daily work. Management implies some standards for goals to meet; the researchers have found out that objectives that meet these standards are more effective.

So, formulating objectives properly is crucial and easy with the help of a simple SMART methodology based on the following criteria:

• S for Specific;
• M for Measurable;
• A for Achievable;
• R for Realistic;
• T for Time-based;

The criteria considered above are versatile; they can be applied to various aspects of our life as business, personal development etc.

Let us have a closer look at them:

S for Specific

Objective Setting should result in a clear answer to the question:”What will I do?” So, abstract or ambiguous formulations are no good. With a vague goal in mind, your results will be much different from what you planned. Forget objectives like “to earn much money” or “ensure decent income” as they lack any sense.

M for Measurable

Any goal should be characterized by certain parameters possible to be measured. These parameters help assess to what extent your objective has been achieved. This is a rather complicated criterion, particularly on Forex where forecasting profit is next to impossible. Nevertheless, planning some benchmarks is crucial to control the progress. You can set any parameters such as profit size, percentages or ratios, frequency of making trades, limits to their volume etc.

A for Achievable

An objective is in fact your impetus to solve small sub-goals lying on the way to the ultimate goal. That is why, to make it achievable, make sure that it conforms to your skills and abilities and is consistent with other objectives you have.

R for Realistic

Objectives should be feasible to reach, while sub-goals – common-sensible yet challenging. However you should be sure of your ability to achieve them. Rational ambition will further inspire you unless you overlook plotting a precise plan and defining a period for achievement of an objective.

T for Time-based

You need to outline a certain time period within which you will reach an objective. Otherwise, there is a risk you will never make it to the ultimate goal.

The stage of objective definition is followed by elaborating a detailed plan on the objective realization.

Set smart goals and you will succeed in achieving them!

Added by Dmitry Antipov,
InstaForex Clients’ relationship manager