It is an unpleasant fact that large numbers of stock market beginners fail 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 with the stock market is not easy. It takes years of hard work, dedication, perseverance, and a never-ending will to learn. Steadily making money in the stock market over the long term isn’t simple, but it sure is one of the most satisfying moments of the past.

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 strong understanding of your mindset (psychology), and your specific strengths and weaknesses.
2. You must develop a solid foundation of knowledge about the economy, the stock market, and stocks in general.
3. You need to work on a business or investment strategy that suits YOU. The investment strategy should take into account all the elements that you identified about yourself in step one. The key to long-term success is finding an action strategy that suits your personality, your strengths, and your weaknesses.
4. Finally, you need to acquire a level of experience in the market. Unfortunately, there are no shortcuts to this, it only comes with time. However, finding a suitable mentor can certainly speed up this process.

Goal setting
The starting point in making sure you are on the right path to success is developing an understanding of yourself. This includes your goals, risk tolerance, strengths and weaknesses. The process of self-analysis from an investment (or trading) perspective begins with the task of determining your financial goals (that is, what it is that you really want to achieve with the investment).

This may sound boring, but to have any chance of sustained financial success, it is vital that you identify your financial goals. A written set of financial goals should be viewed as your financial ‘roadmap’ to success. This “roadmap” will become an important resource to help you build long-term wealth. It should include personal development, lifestyle, and monetary objectives (goals).

The simplest way to create a financial roadmap is to ask yourself, “What am I trying to achieve through ………….?” For example, “What am I trying to achieve by investing (or trading) in the stock market?” Now, “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 create 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 financial success, I suggest that 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 monetary) 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 are more likely to stay focused, and if you stay focused, you are 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 benchmark your achievements against set goals on a regular basis to make sure you are still on the right track. If you deviate from your goals, assess the reason and make appropriate corrections as necessary.

The key is to constantly review, evaluate, and readjust your actions to make sure you stay focused on achieving 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.

Pick one and start working towards it today. Break the goal down 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 unsure of. Whatever your financial goal, take a small step to achieve it on a regular basis.

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