Chunking is the Secret to Achieving Large Goals:
The concept of chunking applies to all individuals seeking to accomplish monumental tasks. This approach not only applies to trading, but many other aspects of life as well (career/business, exercise/diet, etc.). The idea of it is pretty simple, but many people have a hard time implementing it into their daily lives. In essence, all it means is to take large goals and break them down into much smaller, bite-sized pieces. Most things worth doing in life take a long time to accomplish. But unfortunately in this day and age, nobody seems to have realistic expectations (especially when it comes to becoming a successful stock trader). They want instant gratification. They want something for nothing. Profits with minimal to no effort. If the rewards don’t come quick enough or require too much work, they instantly bail at the first signs of adversity.
In order to overcome seemingly impossible tasks, you must first precisely define the goal you wish to achieve. What does that goal look like five years from now? From there, you must reverse engineer that goal into smaller segments. What do you have to do each year in order to hit that goal five years from now? Then for each year, what do you have to accomplish on a monthly basis? For each month, what are the critical tasks that need to be completed each week? You continue to backtrack until you know exactly what must be done on a daily and even hourly basis in order to achieve your ultimate goal. So instead of flailing around wondering what needs to be done to reach your goal, you now have a defined action plan for getting there. You know exactly what to focus on each hour of the day, so you won’t be stuck fixating on your goal without doing anything about it.
Staring at the summit will only result in distraction, inefficiency, and heartbreak. Stare at your boots and take it one step at a time. Eventually, you will reach your ultimate goal.