Happy New Year!

I would like to wish you a very happy new year! Like 2004, this new year will bring plenty of new opportunities and I'm looking forward to it. If 2005 is anything like 2004, it will be an interesting and prosperous time.

On Friday, the major market indices closed out the year with gains of +3.1% in the Dow, +8.6% in the Nasdaq, +9.0% in the S&P, and +17.0% for the Russell 2000. Not a bad year, to say the least, despite several months of sideways movement. Interestingly enough, looking through the predictions many made this time last year, most of the gurus called it right by predicting high single-digit gains for the major averages in 2004.

As with previous years, quite a few readers ask me for predictions for the new year and, even though I find the predictions of others very entertaining, I rarely make them myself. I suppose the reason has to do with the fact that I'm not much of a crystal ball reader. My strategy, with trading and investing, is to simply make the most of of the cards I have been dealt by Mr. Market. To that degree, I accomplished that goal in 2004 and, with hard work and some luck, I hope to achieve the same result in 2005.

While I won't make any bold predictions, I will provide you a helpful tip that will go a long way to achieving your goals in the coming year as well as the years that follow. As soon as possible, sit down and write 12 goals on a piece of paper. Then put that list of goals where you will see it often, if not on a daily basis. Your bathroom mirror is a good place, as well as your wallet. I do the latter.

To help you get started, you should pick 2 goals that can be reached in two months, two more goals in six months, two more in 12 months, and then have six long-term goals. In order of time, they should go from being the most achievable to the most difficult and every year you'll want to add new goals to the list. By having them in writing where you can see them, you'll be well motivated to make those changes that are required before you can achieve your dreams. If you need additional motivation, you may also want to share the list with those who are close to you who can help keep you focused on those goals.

Of course, setting goals is only the first step. They key is to then ask yourself as frequently as possible if you're doing everything you can to work toward your goals. If you think of it in this way, you'll be amazed on how your habits will change so that those goals become achievable, frequently more easily than you previously thought.

I give this piece of advice because I have followed it for the past few years and I have found it very helpful. That's one of the reasons why I lost 70 lbs of weight (and kept most of it off), why I was able to achieve the returns I have from my trading last year, and while I'm slowly, but surely on the path to achieving financial freedom. Many of you desire the same things and while there will certainly be failures along the way, the key is to keep moving forward toward those goals.

As someone once said, if you don't know where you want to go, you'll probably end up somewhere you don't want to be. By knowing what you want to achieve in the weeks, months, and years ahead, you'll make the first smart step. There's no better time than the present to get started.

See you on Monday!