Developing Your Moneyball Trading Goals
When you are in a trade, regardless if it is going in your favor or not, ask yourself this question: Are you in it for this trade only or are you in it for what your portfolio will be worth at the end of the year?
In my previous post, entitled, "Finding the Stock Market's Moneyball", I talked about how Oakland A's manager Billy Beane started from the top goal that he had for the season and worked his way down.
Here is my version of what it looked like:
1st: Make the Play-Offs
2nd: Win "X" amount of games
3rd: Achieve "X" amount of runs
4th: Sign Players that achieve the third goal, which there by allows us to achieve the second goal, which thereby allows us to achieve the first goal.
It's that simple.
For me and my trading, and how I've traded over the years, it doesn't look much different either.
Here are my goals: