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Lesson 11. How to Pick Stocks > Determining Your Objectives - Pg. 60

How to Pick Stocks 60 Fluidity keeps us focused on our goals; it is not the excuse for failing to reach them. By the way, the reverse is true too. Had I reached my $10,000 goal in 10 months, my goal would have changed to $12,000 for the year. Don't rest on your laurels--unless you have made a conscious decision to do exactly that. Determining Your Vehicle Defining your trading objective is a fancy financial way of saying figure out what you want your investments to do. Say that you want them to enable you to buy a boat. But exactly how do you expect your investments to buy that boat--on credit, lump sum, or payments? You need to determine how your investments will enable you to achieve your goal. Plain English Determining your trading objective is the process of deciding what you want your investment to accomplish. Your trading objective then becomes an aid in the selection of the appropriate stock. People who decide they want their investments to supplement their regular income are going to expect their investments to behave substantially different from people who are saving for their re- tirement. You will need to decide for yourself how each individual stock will contribute to your per- sonal trading objective. Several different types of stock and definitions of how they operate follow: · Income stocks · Growth stocks · Speculative stocks