SCOTT WELSH TRADING BLOG

Getting Started Starts With This

Getting Started Starts With This

Sept. 22, 2021

Saying yes is a big deal.

When I would interview potential tennis students, there was a lot on the line.

If we came to an agreement, that meant we were in this thing together for the next five to ten years. Maybe longer.

So I was very picky.

If they showed a history of sampling “the best of both worlds” (i.e. taking lessons from a lot of pros), my answer was no.

If they thought they already had a lot of expertise and just wanted my opinion on a few things, my answer was no.

The only way my answer was yes was if they had specific long-term goals and were willing to completely commit to one voice and one coach.

Is there anything wrong with trying a bunch of things and/or a bunch of coaches? No, not at first.

But at some point, the sampling has to end.

Because sampling gets us nowhere.

While full commitment gets us everywhere.

Buffett has it right. Munger has it right. There are utterly committed to one style of trading, to one system. Forever.

Is it the best system? The research clearly says no. Buffett and Munger could have done much better doing something other than buying-and-holding value stocks.

But that’s how powerful commitment is.

A commitment is astronomically more successful than a more effective system done in the short-term. Buffett’s commitment is what’s made him his money. Not his methodology.

Likewise, a commitment to a mediocre coach can also sometimes reap large rewards. Great players have gone far with average coaches — as long as they were committed to each other.

Of course, when you combine great commitment with a great method, then magic can happen.

But nothing happens without commitment. No amount of coaching can help a player who never commits. No system can make money for a trader who dabbles in the online smorgasbord.

So, the first step to getting started toward financial independence is saying yes.

And meaning it.

Committing to a system and the lifestyle surrounding that system is the number one priority.

Without it, everything else is just meaningless conversation.

In our next Newsletter, we’ll talk about what the next steps might be.

 

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.