Adapted from @AlexHormozi.
Entrepreneurship is not so different from trading.
Can you immediately tell me what your #1 constraint is to your trading and what you are doing to work on it?
Are you ALL-IN on working on that ONE constraint?
@TheOneLanceB Figuring out a profitable and repeatable strategy. I have 5 years of market experience and have watched every single "know this" YouTube video out there. But not a single one shows you a repeatable, consistant strategy. And when you ask, all you get is "teach a man to fish..."
ONLY RESULTS GET PAID
In trading, itโs important to understand that only results get paid. It doesnโt matter if you put in 10 hours or 100 hours or 1,000 hours. If you still make the same mistake, you donโt make PNL.
Iโve trained so many traders that put in tons of effort and fail. Why? BECAUSE EFFORT IS ONLY PART OF THE EQUATION (and sorry to say this, but effort is actually the EASY part!).
Effort is totally useless unless it is effective and translate into results. Sometimes it takes time for the effort to translate into pnl, but only pnl gets paid.
What makes effort effective?
The effort needs to be:
-in areas that translate to results
-executed in ways that lead to changes
If I lose money fighting the frontside trend and then I spend 100 hours reading equity research reports, guess what? Tons of effort, zero effectiveness.
If I put 5 hours into fixing that one mistake and now avoid fighting the frontside? Way less effort, but way more effective.
The second part leads to PNL! Less effort, but magnitudes more EFFECTIVE!
Take a golfer. It isnโt a question of how many balls you hit at the range. If you hit 1,000 balls w the same shitty mistakes, youโre just cementing bad habits.
Trading is a results-oriented game.
Effort is NECESSARY. But it is always SECONDARY to whether that effort leads to positive changes that result in PNL.
That is also the fallacy behind the misinterpreted 10,000 hour rule. There is no magic number. What matters is putting in deliberate practice into areas that lead to real changes for the outcome you are trying to capture, PNL!
So if youโre putting in tons of effort and not seeing improvement, you need to put in the thought to make sure your effort is in the right areas and also make sure you are building systems and processes so that your effort leads to improvements where it matters.