A Critical Distinction for Consistent Profits

Hi, Brian McAvoy here with Inside Out Trading. And today I want to talk to you about something. This is a really crucial distinction you need to make. I mean, if your goal is consistent profits, this is really something you need to pay attention to because there's so many traders that overlook it or they kind of dismiss it or they just plain don't understand it. And it really makes it cause of a lot of frustration. You know, when they're going to trade and they're frustrated that, you know, that they can't make consistent profits. This is one of the main contributors is just a real simple misunderstanding. And unfortunately, you know, if you've ever bought a, you know, we heard somebody center saying, you know, look, look at our new trading strategy. You know, we got in here and we got out over here and look at all this money we made. You can do it too. Just buy our strategy and you'll get those consistent profits. And we all know that. Yeah, okay, not exactly that simple. They make it look so over easy. Okay, here's the distinction that you really need to understand. A strategy is not a system. That's not, they are not the same. A lot of people talk about them as though they are, you know, they say, yeah, you know, I got my strategy or I have a rules based strategy. A strategy is not a system. Here's the distinction. Your strategy is your kind of your plan for how you're going to get in and out of the market to make money. You know, it's like, well, you know, wait until the market turns and then, you know, when it does, you know, have that reversal, I can ride that reversal for a little bit. Okay, that's a strategy. That's not a system though, that's a strategy. Or you know, I'll, I'll identify a trend, I'll wait for a breakout and then let it run a little bit and it'll retrace and then, you know, it'll take off again and I'll get in when it resumes. That's a strategy. Your system is how you're going to execute that strategy consistently, 100 or 500 or a thousand times consistently. They're not the same. And it's super important you understand this because there are a whole lot of traders that are really frustrated. Maybe you know what this is like. Know when you get a strategy from somebody and you go to, you know, you go to trade it and it's just plain not that easy to make money with and you know, you're looking at the charts and it's like, man, you know, the diagrams they showed me, you know, in the, you know, but what I bought, man, it's, you know, it's hard to tell, you know, if this is the right setup or not. And, you know, so, and so, and what happens then is a lot of times you wind up talking yourself into, you know, what you want to see versus what you're actually seeing. And, and the problem is, you know, if, if somebody's giving you a strategy, again, that's not a system. That's just like the general in and out of, you know, how you're going to get in and out of the markets. A strategy is a process. And the better you can define your process and really make sure that it has all the characteristics of a process that will produce repeatable, predictable output. That's the key distinction. This is my background's quality assurance and quality assurance. You know, maybe you've heard of SPC or you know, Six Sigma or, you know, you know, Lean Manufacturing or, you know, some of that kind of stuff, heard some of the terms and, and most of the time when people think about quality, you know, you think about like SPC and you see these charts and it's tracking, you know, machines running. What a lot of people don't realize is one of the biggest things about quality assurance, one of the foundational core concepts in quality is consistent output. Quality assurance is when you have such a well defined process, you have such a handle on your process that you know you're making good product. Unlike quality control like it used to be, quality control was when, you know, production just runs, making things, you know, as fast as you can and you have inspectors standing on the line, you know, checking product and, you know, hopefully picking off the bad product before it gets out the door to the customer. That was quality control. Quality assurances, not going to sit here and, you know, try to inspect quality into the product. We're going to go to the process and make the process again so, you know, so consistent and with such predictable output that we know we're making good product and we'll just focus on the process. And so that's like one of the foundational concepts to quality assurance, which is my background. And after I blew up my account after my first year of trading, when I was just kind of going at it, flying by the seat of my pants, didn't really know what I was doing because when I took my quality assurance know how from my job in manufacturing and I applied it to my trading, looking at, as a process, really focusing on consistency first that's when I was able to get settled down and things really started getting easy. And it only makes sense. I mean, if you have the consistency part down, you know, adjusting it to make it more profitable is pretty easy. But if your process is all over the place, it's kind of tough to fix. So you know what I'm talking about. Most traders, they get it backwards. They chase profit and then try to figure out how to be consistent after the fact that what I teach is how to get consistent first and you dial it in for profit. It's a whole lot easier to make, make that work and get again, consistent profits as the output anyway. So again, you know, I hope you caught the main thing. A strategy is not a system. If somebody's trying to sell you a strategy and it's, you know, it isn't a good process, then you're going to have, you know, it's going to have some, a lot of inconsistency, likely a lot of inconsistency and it'll be very frustrating for you to trade with. So again, there's, there's 15 different characteristics that make for a really good, highly predictable, consistent, reliable process that gives you, you know, predictable output. And, and that's what I teach in my course, the Profit Assurance Blueprint. And if you'd like to find out more about that, swing by insideouttrading.com I got some free stuff you can get there. Take a look at that. It'll give me a little introduction to who I am and you know, this, this thought process. And if you'd like, you can book a call with me. We can talk about, you know, that, that, that course or you know, maybe if you're fighting some other stuff and whether it's consistency or you know, you know, not knowing how to, you know, get really organized, feel like you're all over the place. You want to treat your trading like a business, get it organized. We can talk about that too. Anyway, swing by inside out trading dot com. We're gonna have a conversation. I'll point you in the right direction. You know, if I, if I can help you, great. If some, you know, better off with somebody else cool points you in the right direction. But the main thing is don't just sit there and let your trade and continue and, you know, continue to be a struggle. You need the outside help and the help will get you there quicker. So anyway, again, I hope this been helpful if it has. If you've enjoyed this, subscribe to my channel. Produce videos like this every week where we're talking about, you know, being a trader, how to be a skilled, competent, successful trader and the things that it takes to get there. So if you like this video again, subscribe. Give me a like down below. Share this with your friends. Got friends who trade cool they'll like even more if you help them make their trading better. So again, hope it's been helpful. Swing by insideouttrading.com we'll talk to you soon. Cheers.