The two decades of research on the Cycle of Excellence has shown that top performers are not born but made, and that spending a long time on a subject alone is not enough for mastery.
One major question we often receive is “How do the most profitable traders spend their time which is different from amateurs, which results in such vastly different outcomes of profitability?” Professionals were not obviously experts from the beginning, yet they somehow managed their time and talents differently. This is an important topic that we will look at this short video.
The result of research by Malcolm Gladwell, known as the “Rule of 10,000 Hours”, shows that professionals spend many dedicated hours to develop their skills over an extended period of time.
Most profitable traders have a schedule and training plan for the time they spend learning, researching, and implementing a winning trading plan. The chart below summarizes a study done by Jigsaw Trading and presented by Peter Davies in this video, which highlights the effectiveness of different activities that traders spend their valuable time on.
In the section which highlights the effectiveness of time amateurs traders spent to become a successful, none of activities which are listed below are very effective. In fact, their effectiveness ranges from only 10% – 50%:
Some people may ask “Isn’t spending hours studying books and taking online advice beneficial to become a successful trader?” Not quite. To a certain extent, it can build a basic knowledge of the trading terminologies, facts, and building blocks of strategies. But more often than not, the unrelated, sporadic information received from forums and the media creates a tangled web of unrelated information in a new learner’s mind. It creates a vast ocean of knowledge, with shallow depth, which is not useful for building a winning trading system and mastering it! Skill matters for getting consistent profits with trading and not just knowledge!
It is not surprising to see that the more knowledge of trading is acquired by traders to become successful, the less profitable they become in real market, if they don’t combine the knowledge with proper trading practice and experience.
In the book Talent is Overrated by Geoff Colvin, it highlights the fact that when people do the same task over and over again, they will gain experience of that task over a time period. However, these type of experiences will be the same and will not grow a talented person to their full potential and give them mastery of that skill.
Professionals spend their time wisely by:
As we can see from the studies above, the most effective use of the time traders spend comes from doing the right practice on a trading system that is profitable. Those concepts and learning processes can be learnt effectively by Deliberate Practice under safe simulated environment in the form of drills. You can now start practical Price Action drills in a safe simulated environment.
Why do so many aspiring traders self-study and not work with mentors? What is really the best method of training to master trading skills? We will answer these common questions by looking at the three main domains of knowledge and their impact on mastering trading skills on the blog post “Deliberate Practice in Trading.”
Master Consistency: Build Your Personalized Trading Strategy (Beat Signals, Patterns, Setups) https://www.youtube.com/watch?v=b6kVakvsl2k&list=PLNdkLl_SbhT0q9xpFhLkKbjQ0LiowjCYD&index=3 This blog post dives into the world of trading terminology, clearing up confusion
Master Prop Trading: The Successful Prop Trader’s Insider Secrets For Consistent Profits and Payouts Master Prop Trading: The Successful Prop Trader's Insider Secrets For Consistent
The Three Essential Trendline Trading Strategies that You Need to Consistently Trade Any Market https://www.youtube.com/watch?v=t9kbHfS_Aao&t=155s In this video I’m going to go through the three
Human-Market Psychology Conflicts and Cognitive Emotional Mismatches – Loss Aversion https://www.youtube.com/watch?v=i_n6cbyyfJ4&list=PLNdkLl_SbhT0q9xpFhLkKbjQ0LiowjCYD We continue our discussion on the topic of Human-Market Psychology Conflicts and address the
Trading Signals vs. Patterns vs. Setups vs. Strategies: Why a Personalized, Profitable Trading Strategy Is All You Need for Consistency https://youtu.be/b6kVakvsl2k We’re going to break
Introduction to Trading Personalization: Understanding its Crucial Role in a Trader’s Success https://youtu.be/c1-0XvoJeLc This lesson of module 12, workshop 34, I will discuss the topic
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