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A hallmark of a professional, compared to an amateur, is that they focus on the process — not the result.
The above feels particularly true of trading.
But you can look elsewhere to see the same pattern.
For example, salespeople come across as desperate if they aren’t prepared to lose — which, ironically, sets them up for the loss.
Similarly, traders who focus on the money become scared of losing — which is precisely when trading demons are most likely to appear.
You can’t go into every trade expecting it to go to the moon — or even for it to not lose money.
If you aren’t prepared to lose, winning becomes near-impossible.
Instead, you need to go into every trade simply ‘playing your hand’, knowing that there’ll be more trades after this one.
Consistency
Besides, your fortune (assuming you make one) isn’t worth much if you can’t keep the money. One-hit wonders don’t do well in any industry — you’d (probably) have stopped reading this Substack long ago if you thought my stacks are too ‘hit and miss’!
The question becomes one of consistency:
How do you perform over a long period?
As JUNO said in our second interview, published earlier this week on base.report:
“Casinos are far more concerned about maintaining their statistical edges than the gains or losses of any single gambler.
“Focus on your averages.”
Process design
How well you design and follow your processes directly determine your averages.
As Stockbee put it:
“Different traders use different processes to trade these setups and get different results. A small process tweak can improve win rates or per-trade profits. […]
“Profit is an outcome of a well-designed process around a generic setup idea.”
JUNO and Stockbee also share a focus on singles.
Part of that is a long-term mindset. To quote JUNO (emphasis mine):
“I’m not looking for a trade to go to the moon, I want my system to go to the moon.”
The other part is that once you’ve built a ‘cushion’, you can start to get aggressive. ‘Progressive exposure’, as Mark Minervini puts it.
Or, to use Stockbee’s words: “The singles allow you to oversize” — but only when “all stars are lined up”. Which is where situational awareness comes in.
The core principle
Many people obsess over finding the ‘perfect’ tool or strategy, hoping that’ll prove a shortcut — whether in trading or writing.
You see it in fitness, too. People obsess over the ‘perfect’ exercise, when they’d be far better off to just keep things simple and put in the reps.
Optimisation is important. But rather than obsess over finding the best system, pick an imperfect system that works for you, and refine it with time and experience. Don’t strategy hop. And don’t use perfectionism as a guise for procrastination.
Without good — and consistent — execution, even the best strategy in the world won’t help you.
Preparation and routine
Good execution starts with good preparation.
Good preparation goes hand in hand with a solid routine. It also goes hand in hand with building a situational awareness framework.
Routines and frameworks improve your discipline and confidence. They keep you focused on the fundamentals. And they naturally make you process-oriented.
Enjoy practice for its own sake
Most traders get involved in the stock market because they think ‘trading = easy money’. Then get disillusioned once the bull run is over, if not sooner.
You see similar patterns with content creators. People get excited by the idea that they can make loads of money by making a few videos or writing a newsletter. It looks easy — because that’s how professionals make it look.
But in reality, it’s a grind.
Consider big-name musicians, current or historical — they all produce far more forgettable work than hits. Ditto for big-name authors.
You can’t get to quality without quantity.
And not just in content creation.
The big profits come from a handful of trades. Even traders who go for home runs will place far more trades that turn into small profits or losses than trades that go to the moon.
Your expectation should be for outliers to be, well, outliers.
With that, whether you can find fulfilment in the activity itself becomes an important question.
Content creators should ask themselves an equivalent question: do you enjoy the fundamentals? Do you enjoy the creation process itself?
If so, you’ll create a lot of content.
In other words, you’ll practise a lot. And get good as a result.
But if you need the excitement of a home run (or viral content) to practise, you won’t reach the top of your field. Because you won’t practise enough — nor will you be prepared to lose.
On the other hand, if you love to practise, you have one heck of an edge.
Because you’re in it for the long haul — and the 10,000 hours required to achieve mastery.
And because you’ll enjoy the journey, which makes for a fulfilling life.
As paradoxical as it sounds, your destination isn’t your goal. In any case, as you improve, your goalposts move.
The destination only serves one purpose: giving you a direction.
So, remember to enjoy the journey, too.
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