Mastery
What are you currently focused on improving?
It's a question that often reveals how seriously a trader is taking their growth. If a new trader can't answer this with precision, it signals an opportunity for deeper reflection.
In the first few years, traders often find themselves at different stages of development. For some, it's about grasping foundational concepts—learning the markets, understanding technical and fundamental analysis, and figuring out the mechanics of trading. Others may be experimenting with different strategies, trying to find a style that fits. By the time they hit the intermediate phase, many traders are shifting their focus to mastering their mindset and honing the mental resilience required for long-term success.
But let me ask you again:
What are you working on?
This isn't a question just for those starting out. Even traders who've been in the markets for years—those I work with who are already highly successful—are still relentlessly focused on getting better. Mastery is a never-ending journey in trading. The real pros know that continual improvement is what keeps them sharp, relevant, and ahead of the game.
One of the most effective ways to accelerate this growth is by using a concept I call "Learning Loops."
Learning Loops: A Pathway to Faster Mastery
The essence of becoming a better trader isn't just about putting in the hours; it's about refining your process of improvement itself. The traders who make the most rapid progress are the ones who are deliberate in their approach to learning. Enter the "Learning Loop"—a systematic cycle designed to focus your attention on constant growth and skill development.
At its core, a Learning Loop is a simple three-step process:
- Plan: Identify a specific skill or aspect of your trading to improve. How will you focus your learning or practice?
- Do: Execute. This could involve taking trades with a particular strategy, practicing a mindset technique, or analyzing past performance.
- Review: Reflect on how things went. What worked? What didn’t? What adjustments need to be made?
Plan, Do, Review – Repeat
Some traders may prefer to complete this loop on a weekly basis—setting a goal, practicing it throughout the week, and reflecting on their progress. Others might choose to stretch it out over a month, diving deeper into a specific area of focus. And for the high-frequency traders, running daily learning loops can be incredibly effective.
The frequency isn’t the important part; the key is being intentional about your learning and making continuous, incremental improvements.
As you refine your trading, think about how you could incorporate these loops into your routine. Will they be daily? Weekly? Monthly? What specific area will you focus on? How will you practice? And just as importantly, how will you measure your progress and learn from the experience?
Mastery Is in the Details
In The Trader's Mind Journal, we emphasize the importance of mastery on the "Trading Performance Scorecard." Mastery isn't just about reaching a point of success and resting on your laurels. It's about continually identifying opportunities to improve and acting on them. This could be in your strategy, risk management, or your emotional regulation during volatile market conditions.
To gauge your own progress, ask yourself this critical question and rate your answer from 1 to 5:
"Did I take deliberate action today to become a better trader?"
Mastery is an ongoing process, and it thrives on the actions you take daily. Whether it's working on your mindset, refining a technique, or becoming more disciplined, the question isn't just what you're working on today—it’s how you’re ensuring that your best day tomorrow is always better than your best day today.
So, ask yourself again: What are you working on?
Keep evolving, keep learning, and never stop the loop.