Hi, I am Dr. Doug, CNBC’s trading psychology coach. As we all know, goal setting is an essential part of achieving greatness in any line of work. In chapter three of my new book 8 Ways to Great (Penguin/G.P. Putnam’s Sons, 2010) I take the process of goal setting a step further by combining my PhD in Sport Psychology with my decade of applied work as a trading psychology coach to the elite.

We all grew up learning about S.M.A.R.T goals.

S stands for Specific.

M stands for Measurable.

A stands for Attainable.

R stands for Realistic/Relevant and

T stands for Timely.

In my work as a trading psychology coach, I learned that this model does not work for the financial industry. As a result, I created the C.H.A.M.P. Goal Setting process for my clients.

C stands for Controllable.

H stands for Hard.

A stands for Accountable.

M stands for Measurable and

P stands for Positive.

The single most important letter in C.H.A.M.P. that frequently gets over-looked is C (Controllable). This means that any goal you set must be entirely in YOUR control. Traders simply do not have control over how much they make. The market controls that. A trader’s job is to identify trades where they have edge and to execute those trades based on their game plan. My job as a trading psychology coach is to keep my clients accountable (that’s the A in C.H.A.M.P.) so they do this on a consistent basis.

By focusing on what they can control, it forces portfolio managers to focus on the process (meaning making high quality trades, doing the right research, sizing the positions properly, identifying risk levels) rather than worrying about the Outcome (how much they make on the trade).

In sports, as well as in trading, psychology is what separates the great from the elite.

Take your game to the next level by making sure all of your goals are entirely in your control so you can focus on the trade and not the money.

Trade well,

Dr. Doug