Consistency Of Approach Leads To Consistency Of Results!
Let me ask you a question…
How many times have you made a plan…
Built a clear pathway to a desired outcome…
And…
Kept to that plan?
One of the most confusing and frustrating things I deal with when I work with traders is the common human tendency to see the grass as always greener someplace else.
Imagine I just gave you the best buttermilk pancake recipe ever…
You know I like to cook and can guess that I have tried tons of recipes before landing on this one as the best.
If I write out all the steps and how much of each ingredient to add…
When to add the liquids and how long to let it set in order to get the lightest and fluffiest pancake possible.
Would you follow my recipe exactly?
Yes, you probably would…
Because we have been trained to follow recipes exactly when it comes to working in the kitchen.
And if you started substituting ingredients or changing the process, you would expect that your results would be different than mine…right?
All logical and seemingly simple.
Yet when it comes to trading or investing, there seems to be a drive to constantly experiment and “tweak”…
It’s almost like when it comes to the markets, people enjoy the search and discovery process more than they enjoy money and profits…
Because they will constantly throw away a carefully developed and tested plan…
And instead start a series of random alternate strategy insertions which invariably hurt their profitability….
To be honest, most of the time it will end up losing them money…
And then they are confused about why!
The strategies that we use in my business were developed over 8,000 hours, and since that time, we have analyzed over 16,000 individual trades.
We KNOW what our numbers are…
Because…
We have a huge sample set to look at!
This puts us into an interesting situation when we bring in a new person into our business…
We KNOW what they SHOULD be doing in terms of performance.
But it often takes a long time after the initial technical learning curve to get them investing and profiting with consistency.
It has NOTHING to do with our “edge”…
It’s all dependent on how badly they deviate from our tested and proven plan.
So my job as a manager and mentor is to essentially highlight how their analysis deviated from the “norm”, and to show them how that failure to stick to the check points hurt their performance.
Do you want to know the “secret” to consistency in profits?
This is after all, the holy grail of all investors…
Producing a stream of steady and consistent profits…
The secret is simple…
You ready?
DEVELOP A PROFITABLE PLAN AND STICK TO IT!
This is so simple to say, but so hard for folks to do…
We hear the word “discipline” thrown around a lot in the investing world.
This is the core of Discipline…
Just DO WHAT WORKS!
Then…
Do It AGAIN!
And again…
And again…
It’s not sexy…
It’s frankly extremely boring!
However…
If you want to achieve the outcome of more and better trades…
Larger investment returns…
Find an edge in the markets that works for you…
Then WORK THAT EDGE!
Follow the recipe…
The edge is the edge…
It will produce exactly the profit expectation you discovered when you tested it…
And once you embrace this concept…
You can for the first time be calm and confident in the results you will achieve!