Setting financial goals helps you to keep the big picture in mind and targets you to set for how you want to spend and save your money for the future.
The Main objectives of Financial Goals is to determine by the future requirements of funds and priorities that can be accomplished. Goals must be of short terms or long terms and should have a specific purpose and must have realistic targets. Financial Goals will be only achieved if you maintain proper management of your Spending and Savings, by creating Budgets on spending, saving for any emergencies and to do regular things without compromising.
Don’t set goals to be Quick rich or Dream bigger than your budget as it’s not a specific or clear goal indications. One must not depend on Stock Market to make their Financial Goals as it is little risky without Learning Markets and also the price is fluctuating, today’s price is not guaranteed to be in positive in future, so long term Goals can be risky. Keeping Goals is so simple, but only one must make a decision whether its Short term or Long-term Goals. Short terms Goals like Buying Mobile, Laptop, Household Items or Electronics, Weekend Holidays, Paying Children’s Tuition and School fees in advance, etc. And Long terms Goals like Clearing all Financial Debts, Planning for Retirement, Clearing Home Loan to save future EMI and Taxes, saving funds for Emergency Hospitalisation in Future, Long Vacation with Family or For Children’s College fees or Student Loan which can be arrived to take additional Course or Degree. Long-time Goals is good for achieving Surprise Debts which can arrive anytime in future.
The ideal Investment and Secured future choice for safe guaranteed returns or Low-risk Returns would be as follow:
1). Bank Deposits, Fixed Deposit or Recurring Deposit. (Safe)
2). Life Insurance Plan with features like Cash Back Bonuses and Dividend, and also that Family will be secured after Policy holder’s Death. (Safe)
3). Mediclaim Policy or Medical Insurance so that there will be almost less or no Medical and Hospitalisation expenses in future for Current or Coming health issues. (Safe)
4). Provident Fund or Monthly Pension Plan, so that after Retirement it can be Utilised. (Safe)
5). Post Office Schemes similar to Bank Schemes. (Safe)
6). Mutual Funds of Good Company for long terms. (Low Risk)
7). Investment in Commodity like Gold, Silver, etc. Price changes every second so it can be little risky in future. (Low Risk)
8). Real estate Property Investment, this can be tricky for future as Country is developing and becoming Digital, many Smart Cities Project are Upcoming, so it can reduce the demand and result in the price drop in per square foot.
Successful Mantra to Be a Pro Trader.
Education is Must: One must never Invest in Indian stock market or any other Investment before knowing it better. No education is Riskier than less education. Don’t believe in News, Tips or Rumours, educate yourself to be a Pro Trader, this will keep you in Profit in the Long run. Before earning one must learn to protect the Capital first in Trading account.
Trading on Emotion: Never Trade on Emotion, always have Balanced state of mind while trading. Emotion always affect the focus while trading, so always remains Focused and be Emotion free while on a Trading terminal. Don’t force yourself to do trading if there are no opportunities. Trade what you see not what you Believe as fear of missing the trade will end up being wrong.
Trading for Quick Rich: Never ever Invest in Indian Stock Market if you dream of becoming quick Rich overnight. Not every Stock you choose will be multi-baggers stock, just Trade safe. Placing large lots or big leverage in Single trading for huge profit can lead to Big loss as well.
Using Stop loss: Always use Stop loss once you placed the Trade order, it will be a risk-free trading and losses will be minimum. Traders lose the most money when the market offers the greatest profits Opportunity.
Right Management: One must do proper Risk and Money Management with Financial Goals to do better trades, it helps you to recover your past losses with other trades in future. Never invest in one single stock as it is risky and not a proper Discipline to trade.
Proper Research: A Pro Trader will always Research before opening any trading position. One must do Technical and Fundamental Analysis for understanding Market movement by the Trend and Company’s Valuation.
Trust Yourself: Always trust yourself and your System, be patience after opening Trade position. After doing all Analysing, once you Bought something, be patience and keep an eye on the Trading platform, don’t lose your cool and don’t be Impatient, It will lead to pre-closing due to lots of stress and result in a loss. It’s very hard to follow your trading rules when things get really crazy but stick to it. You will end up with Profit or Loss but if you have proper Risk and Reward ratio, in the end, you will be in profit overall. Always keep your Profit bigger than the Stop loss.
Trading with Strategy: Always trade with your System or Strategy. Test it before using your hard-earned money. One must test his Strategy and Monitor for some time before getting good accuracy and Confidence.
The trend is your Friend: Never ever go against Market, always wait for the good opportunity to enter. Remember Trend is your friend, before taking any position check the Trend and Market position, Fundamental pressure, etc. Don’t rush to Buy at low and Sell at high, always follow the Trend. Doing this will help you maintain your Trade position and have proper knowledge and Experience in the end.