Master Goal Setting for Maximum Results

In the summer of 2012, Allyson Felix stood poised at the Olympic starting blocks, fuelled by a burning desire for gold. The weight of her previous silver medals hung heavy on her mind, driving her to declare, "I can't lose again." 

And in less than 22 seconds, she claimed the coveted gold. 

But as the thrill of victory washed over her, an unexpected emotion crept in—relief, not elation. She realised that she had been fuelled more by the desire to ‘not lose’, than she was by the goal ‘to win’. 

Science shows the way you frame your goals can determine whether you achieve them. However, it can also determine how you will feel after you have achieved them. 

This is the power of framing goals. The way you define them can not only shape your chances of success but also influence how you feel once you've achieved them. Science unveils the fascinating connection between goal framing, achievement, and post-victory emotions. Motivation researchers are often involved in studying two types of goals - approach goals and avoidance goals. Winning the 200 metre race is an approach goal. ‘Not losing’ is an avoidance goal. 

Approach Goals vs Avoidance Goals

Research reveals an intriguing aspect of goal-setting: if we solely pursue avoidance goals, the sense of enthusiasm and fulfilment we expect upon achieving them diminishes. 

This is a problem, because for habit formation to truly cement, a perceived reward is of paramount importance.

When your focus centres primarily on avoiding certain outcomes, the emotional boost you typically experience—known as positive affect—upon accomplishing a goal is dampened. Instead of deriving satisfaction and fulfilment, we may even feel drained. 

Allyson Felix's experience serves as a prime example: having fixated on avoiding a specific outcome in the 200-meter race, winning the gold failed to bring her the genuine sense of satisfaction she had anticipated.

It all came down to what drove her and how she framed her goal.

In some ways, the results might be the same, and not dependent on whether you set an approach goal or an avoidance goal. However, when you lean into an approach goal, the rewards you experience will feel richer.

So, should you run towards the goal of financial independence, or, away from the possibility of financial need? Well, actually, there is another definition that is more likely to provide a framework for an appropriate goal for traders.

Mastery Goals

A mastery goal is widely regarded as the pinnacle of an approach goal. It entails striving to comprehend and apply the subject matter, aiming for a deep understanding of the content. According to Dweck and Leggett, mastery goals reflect an individual's determination to maximize learning in achievement-oriented situations.

When students approach exams with the mindset of mastering the material rather than merely avoiding failure, they tend to grasp and retain a greater amount of information. Moreover, when motivation stems from the desire to achieve mastery rather than seeking external validation, the appreciation of their teachers or extrinsic rewards, students are more likely to succeed in their aims.

Extrinsic rewards in the markets could include trading so you’ll achieve a particular percentage return, or a certain level of profit. Intrinsic rewards in the markets may include the positive feelings of accomplishment you receive when you make your first trade, follow your trading plan to the letter, or finally complete the online course for your charting package. 

What sort of goals should you set for yourself as a trader? 

It’s likely that the accomplishment of a mastery goal involves a high degree of intrinsic motivation. Intrinsic motivation is most commonly defined as “doing something for its own sake,”. For example, when you learn about trading for no reason other than because you want to. There isn’t a driving force of financial need making you want to be a trader. You’re just curious and fascinated by the entire field and you want to learn as much as you can about it. 

When it comes to trading, intrinsic motivation arises from a genuine fascination with the markets and a desire to immerse oneself in learning. There is no external pressure to please others or meet their expectations. It's a personal journey driven by your own goals and aspirations.

Intrinsic motivation pushes you to become an expert in the fundamental principles of trading. This includes implementing checklists and trading plans that outline entry and exit strategies, as well as position sizing. You'll also strive to master your trading platform, charting tools, and the specific trading discipline you choose, be it technical analysis or fundamental analysis.

Being intrinsically motivated means developing expertise in the nuances of trading and cultivating a resilient mindset to navigate both the challenges and triumphs of the market. You won't solely rely on the emotional highs of profitable trades or market rewards. Your motivation is multifaceted, extending beyond financial gains.

The age-old saying, "money flees need," underscores the importance of setting intrinsic goals. If your focus is solely on extrinsic goals tied to your trading performance, you're less likely to persevere and find true satisfaction in your results. Intrinsic motivation provides a deeper sense of purpose and fulfillment on your trading journey.

Allyson Felix’s story

So, what happened with Allyson Felix? 

Did she learn from her realisations about disadvantages of the avoidant goal method? 

Yes she did. She went on to become a six time Olympic Champion, a 16 time world champion and a world record holder. She harnessed the power of goal setting and visualisation. She states:

“… so it’s just really about quieting my mind, closing my eyes, and really going through the motions of what the perfect race looks like,” said Felix. 

“I ask myself, ‘What is the perfect race? How did things come together?’ Every four years, I have this opportunity—for only about 21 seconds—to get it right.” 

Felix was used to intense training 6 days a week, 5 hours a day. However, one of her biggest fears came true in 2018. She remembers training in the dark at 6 months pregnant, worried that her sponsor would find out about her pregnancy. 

So many athletes are forced to choose between her running career and motherhood. Getting pregnant as a competitor in the track and field arena has even been called the ‘Kiss of Death’ and considered to be a career ending move. 

Even though many sponsorship brands were encouraging women to have it all, apparently, in contracts with their athletes - that ‘all’ did not include motherhood. In a very public way, Allyson Felix called out the difficulties for female athletes aiming to have a family.

Felix went on to publicly call out Nike’s maternity policy and succeeded in changing the way sponsors contract their talent. Now Nike offers 18 months maternity protection. Other sponsors also followed suit and protect their athletes by covering many matters related to pregnancy and child raising. 

Felix went back to the field one year after giving birth and won a gold and a bronze medal, and ultimately became the most decorated woman in Olympic track and field history – all while her daughter was watching. She was running for different reasons – to support women in their choices in life and to encourage them that they could achieve at a world class level after having a child. 

She says: “We have got to stop making people choose between parenting and doing the work that they love”. 

“You don’t have to be an Olympian to create change for yourself and others," she says. "Each of us can bet on ourselves."

So the next time you set goals for yourself in the market, consider how you frame these goals. As you learn to fly in the markets, don’t try to avoid the ground, or reach for the stars. Aim to master the task at hand by setting mastery goals. That’s where the true rewards lie.