Comment on Mr Consistent returning incredible returns

Madan commented on 28 Jan 2014, 10:32 AM


Good question. I will try to explain my understanding of this aspect.

Both of them are right in their own sense. Hard work is the necessary trait that keeps us going when the going gets tough. So, in the early phase, hard work is extremely important but in the later stages, one would do most of the trading related activities sub-consciously.

Think about this. When Kobe or MJ throw a 3-point shooter in basketball, do they really think about how to
coordinate the action between their hands and eyes? Do they really think about the angle the elbow has to bend in order for the successful shoot? Do they worry about their footwork while grabbing a rebound? The answer is ‘no’ to all the questions. But when they started out, they would have put long hours to learn the basics of the game. Once the muscle memory is set, its all about tweaking and being strong mentally.

I gave this analogy because trading is also a performance endeavor and with any such endeavor, tremendous amount of repetition and hard work is needed to attain the muscle memory stage(in trading, it is brain muscle memory). A trader typically puts lot of work in the beginning and later, its all about how well he follows the plan he has put himself to. That does not mean that he can relax and see the road to riches. This game is like going to battle fresh everyday. If a soldier gets lethargic one day in the battle, he might lose his life.

A trader should also constantly look for improving himself (remember, it is not improving the system but himself). As they say, the biggest ever investment one can make in their life is on themselves (both physically and mentally)

Hope it helps.

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