I had lunch with two developing traders today and asked them their PnL goals for 2018. I was really curious to hear their responses. My sense was they were a bit surprised to field this question from me.
At SMB we focus on process goals to drive results. What are all of the things you need to do to hit your goals for 2018? And when you do all these things, we find those with talent often surpass their goals.
PnL goals are often not a focus, as that depends on opportunity, trader talent and a trader’s personal learning curve. One might be making excellent progress, without the PnL coming. One trader at the firm was improving each month, setting himself up for his best year ever, without the PnL coming. One developing trader might take longer to see PnL progress, but be right on track. So a focus on PnL can often impede our overall goal of developing consistently profitable traders and then better.
But I have found that adding a PnL goal works for our traders. I remember challenging a few of our 7-figure traders in 2017 to hit 30k in PnL for the month 4 years ago. My sense is that challenge jump-started a new level of progress for these traders. Our traders are so strong in process that adding this PnL goal often does not impede their progress. It frames all the work that they need to do daily to reach their goals.
One trader at lunch thought 100k was the right goal for 2018. Now with that goal he can work backwards. What are all the things that I need to do, so that next year at this time, I can hit those numbers?
- What do I need to do with technology?
- What should my Team be doing to help me improve?
- How can I lean on Dr. Steenbarger to hit my goals?
- What review work must be done?
- What trades do I need to trade bigger?
- What health routine ought I to follow?
- What time should I get to bed?
Expectations can be a powerful driver of trading success. Setting your sights on 100k might be an important step and motivating to do all that is necessary daily to recognizing your goal.
Just thinking you can make 100k won’t lead you to. You do need the PlayBook and skills as well.
But seeing yourself as a 100k trader at the end of the year is important to your development as well.
Oh and to that trader who thinks they can hit 100k in 2018. You’re damn right you can!
Your comments/feedback are always appreciated- mbellafiore@smbcap.com.
*no relevant positions