Brian McAvoy from Inside Out Trading argues that consistent execution of an average strategy beats inconsistent execution of a great one. He draws from his QA background to show why traders get stuck: they chase profits instead of drilling the fundamentals. He offers a trader scorecard to measure consistency.
Hi there. Brian McAvoy with Inside Out Trading. Today we're going to talk about how nearly all traders are going at it backwards. And seriously, most traders are going about it backwards. They really are. I mean, if you think about it, you know, consistent profits, that's like the magic buzzword here. On every trading website or YouTube channel, everybody, it's like, you know, try our strategy, make those consistent profits. Like it's the magic buzzword. And you know, it. Seriously, it's put on everything, going to buy our tennis shoes, you know, you'll make those consistent profits. You know, you buy our computer. So no, stop. First of all, you know, consistent profits. And the main thing, like I said, everybody's going about it backwards. Everybody's like, well, I just want to find a good strategy, you know, to find the strategy with a good edge. And, you know, because I want to get profitable. And so it's like everybody's chasing profits first. And it's like, you know, I want to get profitable and then I'll figure out how to be consistent about it. It's like, no, that's absolutely backwards. You see, I used to be a quality assurance manager. I'm actually a certified quality engineer. And the whole thing about quality, really the foundations of quality and really running a good, profitable business, is consistency. What I learned when I was in quality assurance was in manufacturing. It's a hundred million dollar plan I was responsible for, and my job as the quality manager was to get consistent performance, consistent output out of all the machines there and all 183 people working there. And the thing about it is consistency is where you want to start. It was true in manufacturing. It's true in every business, but it's especially true in trading. You don't want to chase profits first. You want to chase consistency first. You want to establish that consistency. And here's why. If you have a consistent process that's pretty much, that's pretty easy to adjust it and make it more profitable. It really is. But if your process is all over the place, that's kind of hard to fix. It's going to not perform as well as everybody would like. I mean, I want to share what I found is really probably the most simple secret there is to making money in trading. If you can have just a mediocre, really not great strategy. And, and here's the simple truth about it. An average strategy executed consistently will outperform and make more money than a great strategy executed inconsistently. That's the simple truth about it. With trading, you've probably Experienced this firsthand, you know, yeah, you might run across a man. It's a great strategy, killer strategy. But if you're not executing it consistently, if you're still, you know, deviating your friend around, making changes, chase trades, all that kind of stuff, if your execution is not consistent, it's not going to make you as much money as if you have just an average strategy, a decent strategy that is executed very consistently. So consistency really is the key. And that's why I try to stress to everybody, you want to pursue consistency first. Now understand something. Consistency is not discipline. I mean, it includes discipline, but there's so much more to consistent. And again, this is what I learned as a quality engineer and, you know, being a quality manager in a manufacturing operation where again, I had 183 people, seven different departments, four different shifts, people coming and going all the time. We had our turnover and it was my job to make sure that we got consistent, good execution out of everybody in all the different jobs, all the different departments. That's what I loved about quality assurance was I learned how to do that, how to get consistent execution. Everybody doing a job consistently getting consistent output, that's what I bring to trading. Now. The cool thing about this is it's something you can learn. This isn't a psychological hack. Again, this isn't about discipline or emotional control or willpower or any of that kind of stuff. When you acquire, when you learn how to establish consistency in your trading, it gets really easy. That's what allowed me to turn my trading around when I was able to take what I was doing with my quality work and establish consistency in my trading and a good consistent process and all the other things I was doing in the manufacturing world. And I applied it to my trading, everything turned around and my emotions calmed down. Things got super easy, got easy to execute and execute consistently and I started making money. And that was the best thing about it was, and it got easy because I had a handle on things. Now if you've been struggling, if they're, you know, you're just having a hard time making money, you're having a hard time making money and keeping it, you know, you'll make money, you give it back, that kind of stuff, or you just find you're doing a lot of system jumping and stuff like that, it's because you're probably missing something in your trading. Trading is not an entry level job. You can't just, you know, it's not just anybody can walk off the street into this job and be successful at requires a range of skills and a level of competency. And if you're lacking those things, if you're missing Even, you know, 10 or 20% of what you need, I mean you can have 80 or 90% of what you need, but if you're still missing that 10 or 20%, you're still going to have struggles. It's still going to, it's going to be difficult now. So what, what might you be missing? Well, I've created a scorecard to help you find out. It's a good starting point. It's like a checklist, all the things you really need to be doing as a trader to make it easy. So what you want to do, swing by inside out trading.com at the top of the page there's a link says Trader Scorecard. Just click on that and it's a self assessment to let you find out okay, what are you doing? What are you missing in your trading that you need to attend to to make it start getting easy to get that consistency that you want? Because again, when you have the consistency, the profits get easy. They really do. So anyway, swing by ins outtrading. Com, Take the scorecard, you'll be glad you did. And if you found this video helpful, give me a like and a subscribe down below. Share this with your friends. Leave me a comment and again I hope this been helpful. Talk to you soon. Cheers.
