Common lessons from corporate, sports and investment portfolio transformation! | Traders Journal

Decades of experience in business, investing and sports have shown us time and time again that parallel instruction is an extremely valuable teacher in all three areas. One important lesson today (January 2024) is not to allow yourself to become a “legend in your own mind.” Yes, you will have achieved amazing investment results in 2023. But before you accept the role of the next Warren Buffett, remember that the S&P 500 is up more than 24%. Whatever popular cliché you want to embrace (“a rising tide lifts all boats”?), you must remain humble. Otherwise, the market will inevitably remind you that you are not Warren Buffett.

As I read this book, I was stimulated by this observation. wall street journal Article about University of Michigan football turnaround coach Jim Harbaugh (January 6, 2024). Even business schools are studying his methods. That’s because successful transitions in a variety of fields have surprisingly similar properties.

Coach Harbaugh makes it sound simple (of course it isn’t). He argues that all you need to do is:

1. Struggle.
2. Try to improve and get better every day.
3. Acknowledge improvements that further enhance and strengthen your winning results.

Of course, there are many clear differences between underperforming companies, discouraged sports teams, and distressed investors. But my point is that regardless of the 2023 12-0 investing season, Harbaugh’s three simple rules for money management should provide guidance and motivation as you head into the new year.

I wrote much the same thing in my own trading journal. I had to remember what Marty Zweig preached, even though many of my biggest positions like ADBE, AMZN, MSFT, and COST performed much better than the market. “Trends are your friend.” He was my best friend in 2023! I’m sure the script will be different in 2024. Don’t rush.

Therefore, I implore you to embrace Harbaugh’s three rules and recommit to our craft.

I am writing this to all of you, my investor friends. As Coach reminds us, always go back to basics. The basics are important. With this in mind, I’d like to suggest you revisit the Investor’s Roadmap to Success into 10 Essential Steps to Stock Market Mastery. seal trading). Provides the foundation for consistently profitable investments.

Here’s why these 10 steps are essential: Without a structured roadmap for systematic and systematic analysis, our investment decisions can easily be tainted by the excitement and influence of the moment. Impulsive investing is toxic. The 10 steps will help you understand and justify purchasing a stock or help you decide if you should buy a stock.

The point is that as you adopt the 10 steps and develop the appropriate discipline and skill set, the experience becomes more complex. Each step contributes to increasing your chances of achieving a profitable trade. The result is not only improvement and a “higher batting average,” but also consistency and understanding of the methodology that can be replicated over and over again.

That’s right. You can achieve consistent profits and understand how to do it. We are coming in 2024!

Have a good deal. Trade with discipline!

— Gattis Rose