Setting financial goals is one of the four keys to successful stock investing for beginners

It is an unpleasant fact in life that a large number of stock market beginners fail in the market within the first six to 24 months.

It's easy to buy and sell stocks. Now a day, all you need is a computer, internet connection and a discount brokerage account to get you started. But actually making money in the stock market is far from easy. It takes many years of hard work, dedication, persistence and an endless determination to learn. Making money consistently in the stock market over the long term is not simple, but it is certainly one of the most satisfying past times.

To be a profitable equity investor, you need to master the four keys to success:
1. You need to have a clear understanding of yourself. You must clearly define your financial goals, your risk profile, develop a healthy understanding of your mental composition (psychology) and specific strengths and weaknesses.
2. You need to develop a solid foundation of knowledge of finance, stock market and equities in general.
3. You need to work on a trading or investment strategy that is right for you. The investment strategy must take into account all the elements you identified about yourself in step one. The key to long-term success is to find a stock strategy that fits your personality, your strengths and your weaknesses.
4. Finally, you need to gain a level of marketing experience. Unfortunately, there is no shortcut to this, it just comes with time. However, finding an appropriate mentor can certainly quickly trace this process.

Goal Setting
The starting point for following that you are on the right path to success is to develop an understanding of yourself. This includes your goals, risk tolerance, strengths and weaknesses. The process of self-analysis from an investment (or trade) perspective starts with the task of determining your financial goals (ie what will you actually achieve by investing).

This may sound boring, but in order to have any chance of achieving sustained financial success, it is important that you identify your financial goals. A written set of financial goals should be seen as your financial 'roadmap' to success. This 'roadmap' will become an important resource in helping you create long-term prosperity. It should include personal development, lifestyle and monetary goals (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?" Or, "What do I need to change or improve myself to be a successful (trader) investor?"

Remember, it is important that you identify the underlying cause that you want to create wealth.

This is important because it is the underlying reason (or motivational force) behind why you want to create wealth that will motivate you when times get tough. It will help you focus again as you experience a series of losses in the stock market.

To help you identify the underlying reasons why you want financial success, I suggest avoiding answers like "because I want lots of money" or "because I want to be rich". These answers do not go to the heart of what you actually want to achieve.

Ask yourself why you really want to achieve wealth. It may be because you want financial security, or it can be getting the freedom to do what you want when you want. Whatever your reasons are, make sure you focus on why.

So take the time to set your financial (including: personal, lifestyle and monetary) goals for the next 12 months, 5 years and 10 years.

Having clearly defined financial goals is a great motivator when trying to achieve long-term prosperity. If you have clearly defined goals, you will be more likely to stay focused, and if you remain focused, you are much more likely to achieve your desired goals.

It is important to remember that this is not a definitive list. Setting goals should be an ongoing exercise. You should get into the habit of reviewing and refining your goals regularly. You should also 'benchmark' your results against your set goals regularly to ensure you are still on the right track. If you find yourself deviating from your goals, evaluate why and make the necessary corrections as needed.

The key is constantly reviewing, assessing and re-adjusting your actions to ensure you remain focused on achieving your financial goals. Once you have a set of goals, the next step is to take steps to achieve those goals. Goals are nothing if you do not take the necessary action.