Below is another article written by Dr. Van K Tharp, reprinted with permission.
He is a well known figure in the world of financial markets. I find his works to be very useful to my trading venture.
So, traders out there, do read this article and absorb as much as you can.
Vision and Purpose: The Beginnings of a Business Plan
by Van K. Tharp, Ph.D.
One of the keys to real success in trading is commitment. Before I coach a trader, I look for commitment. Those who are not committed to do what it takes, usually commit financial suicide when they try to be full time traders. Now, I have no idea how to create a sense of commitment in people. It’s something you are born with— not something I can coach.
However, I do have some clues to how you can develop it in yourself. The key to doing so is to develop your vision and purpose, which is an integral part of developing a business plan. Your vision is your dream life. What do you really want to accomplish, be, and have in your life to know that you’ve done your best? What is your dream life? I’d write this out in detail.
And you also want the purpose behind the dream life. What are the “whys” in your life? This is what gives it the real motivation and commitment. Why do you want the things you want? Write down as many “whys” as possible. You’ll know you have it correct when you are so excited about your dream life that you must do something right now.
By answering these questions, you are creating the very beginnings of a successful business plan. Your business plan is a tool for you to continually use to improve yourself and your trading. The rest of the steps to develop and complete business plan are covered in some detail in our teleconference on business planning, including some sample plans that I critiqued during the last session.
So get started this week with just this one aspect of developing your business plan for trading or investing…start by writing out your vision.
The Above is an excerpt from the July 2004 Market Mastery issue, the first in a multi part series on developing Peak Performance in the markets.
About the Author: Trading Coach Dr. Van K Tharp, is widely recognized for his best-selling book Trade Your Way to Financial Freedom and his classic Peak Performance Home Study Course for traders and investors. Visit him at www.iitm.com for a FREE trading game or to sign up for his FREE weekly newsletter.
Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.
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