S2 E18 - Work to Learn not just Earn - Part 2
15 Jun 2021 · 17 min
Jeremy Newsome and Brittany discuss learning through deliberate practice. Newsome spent seven months simulating historical stock market data back to 1901, trading day-by-day to compress years of experience. They argue obsessive focused work builds expertise fast, then maintaining it takes far less time.
Chapters
You are listening to this and watching this because you want to learn how to learn. In this particular episode, we're going to be talking about a revolutionary and impactful way for you to optimize your learning abilities at a rate which is unparalleled. Probably going to want to listen.
Thanks for asking, Brittany. It's a great question. You're asking about how. How I practice specifically. And in this episode, I would love to talk a little bit about how we can practice. Not just me and you, we, but all of our listeners from all around the world, especially Lithuania. Shout outs. Shout out to everyone in Lithuania. We love you guys.
Make us number one.
That's right. Make us number one.
Make us number.
We're number seven over there.
What? I thought we were five.
There's some other podcasts are coming in.
Take us to number one.
Here we go, guys.
How do we learn? So we learn how to learn. The question that you proposed to me was, how did I do it? How did I go back in time and kind of practice my craft? So there is something in the stock market world that very, very few people do. When I say very few people, I'll probably mention, like hundreds of people in the world have done this practice. And it's called back trading. So back trading is where you can go back in time using a computer software program and pretty much simulate either day by day, week by week, or month by month, what the stock market did. And you can either be in certain trades and you can see how they would have performed, you can be in certain strategies and see how they performed, or you can just kind of watch it and see how you would react in certain situations. So what I did was go back to the Dow Jones, back to about 1901, which is about 20 years after pretty much the inception of the Dow Jones Industrial Average. And I went day by day.
Practicing getting a visual representation of what the stock market did in the 1920s, the 1930s. Right. So we're talking about World War I, World War II, the Cold War, Vietnam. Like, I'm able to go through all of these times in history and really see how the market reacted and just get like a. An imprint, a burning image into it and just get a feel for how the market flows during certain times. And that practice was very intentional. It was very specific. But it took a lot of time, by the way. So that's one of the things I was spending seven hours a day on, was not only was I working at the time, but I was also still trading and practicing actually trading. But I Was going back in time and trying to go, how much years of experience can I get in a short period of time?
That's amazing.
Yeah.
And I think the picture in my head is you, you know, trying losing, trying losing, you know, making it and then losing. And then you just became obsessed. And it's almost that survival, creativity on, I will make this no matter what. How many days, weeks, months did it take you to go all the way back in time?
Well, it. About seven months, basically.
Of your free time.
Yeah.
Did anybody pay you to do this?
No, no, no one was paying me or asking me. It was just. I had to do it myself. And it was just such an interesting experiment because I was like, I don't think anyone's ever done this, number one. And the people that do this most likely are going to be extremely skilled because they get to see so much.
Right. And you can understand the future by understanding the past, at least in this specific trading world.
Yeah, absolutely. I mean, not only in the trading world, but I would say, I would argue in anything, if you can understand human psychology and how people reacted and why they react that way, then you can really piece these puzzles together. Okay, this is actually. Humans are doing this. So you're going back in time. You're not actually obviously placing real trades, but you're able to see what you would have done and why, and going, oh, my gosh, I would have lost on this trade. Why would I have lost on this trade? Or I would have made much on this particular trade. Why is that? Even though it was all the way back and you get to ask questions and again, the quality of your questions determine the quality of your life. So being able to put yourself in that position, it's not just with the stock market. You can do that with anything. It's taking the time to do it. And we're going to be talking about optimizing your time very soon, but specifically being able to sit down and think through, how can you practice? How can you simulate? What data can you go back and look at? Same thing with real estate, relatively. Sure, there's probably some data that you can look at.
There is. There is, I think, the most important thing because I, you know, history repeats itself to certain levels. The thing that I've always weaved in, which is going to sound weird, is I just ask, for me, I ask God, what, what is the future? Like, what trends are resonating with the human spirit? Like, what makes you crave that? And so where it's not a trend, it becomes a movement. And how can I integrate movements into the way in which I purch land, design homes, design developments, design countries to where if you can get in the way of the future, then it's gonna work. Whether or not there's some historical data on certain things for, you know, that's just a way in which I design real estate. For example. If you're developing in an urban neighborhood, people still love and resonate with nature. And the more of a cold, concrete box you live in in the urban core, you still want that nature, but you're not. You don't have enough time to drive two hours away to like sit in a forest or whatever. And you may not even have one that close. So how can I bring the forest into your home? We design these green elements. I literally have like plant watering systems throughout the inside and outside of the house. We've got green walls, green roofs, you know, planters built into the house to where your home is your garden. You know, your, your living room is your garden. So there's some fun ways to study history and then apply the new movements into the way in which you design. You know, right now you're seeing more people in the stock market than ever before in history, more untrained, and more young people of all different colors, shapes and sizes. How is that going to affect the future? And so we'll go into that in just a second. But I don't want you guys to miss the essence of what Jeremy did. He was obsessed, right? And that obsession was fed by hunger. And that hunger was probably fed by pain and passion, which was the passion to live his calling and to be able to help so many people. But the pain of constantly failing at it, these are common denominators. So if you have somebody constantly bailing you out, or if you have some, you know, your daddy's giving you everything in the whole world. That's not necessarily a good thing. If it is happening, how can you take it to the next level? Don't hate yourself from your quote unquote privilege or whatever. Like if you're given more than more will be required.
Yeah.
So if you don't have to suffer the way that we did and many others do across the world, then, then how can you take that gift again to the next level? But it does take that hunger, the passion and, and that desire to focus when no one else will pay you to do it.
Yes.
It's all those late nights, it's all those weekends. You could have been partying, you could have been jet skiing, you could have been Whatever. And instead you were diving in for no one else but yourself first to gain that knowledge to be able to help more people. That's why I keep saying the word education. Education, education. It's that self made education to figure out however you need to, to learn whatever you need to learn, whether or not it's available in college. Again, we're very pro education.
Yes.
Get it however you need to get it for what you need to learn.
Right. And it's probably most likely not gonna be as expensive or arduous as you might think. You know, I mean you can go to university and you can go to college and you can learn all kinds of things, but the path probably is in that direction unless there's some very, very specific route or specific course. But regardless said, you get paid in public for what you practice in private.
Absolutely. And you get praised. Yeah, you do.
So when you're talking about being obsessed, I want people to understand that when we go back to a few episodes ago and you talk about balance and equilibrium, there is a time and a place where you can't be balanced. There's a time and a place where you can tell your friends or your family or whoever you're with at the time and say, listen baby girl, or husband or whomever, this is what I'm going to be doing for the next X period of time and this is why and explain it. And so here's the hours of the day. I'll still make time for you, of course, you're still number one priority. But these are something that I have to learn. This is something I have to pour in an immense amount of time into because specifically real estate. Absolutely. The stock market, software programming, a few others. But these are what's called high income skills. And if you practice a high income skill enough, there becomes a limit where the ceiling is so massively far away. Because in the stock market realistically is unlimited. You can make unlimited money, there's no cap. Right. And with real estate, there's some transactions like you can go very, very, very big, but it takes time. And just like in the stock market takes time. Anything takes time. Software, developing perfume, if you make perfume, I mean that's one of the best margin things in the world. It's more or less water and chemicals. Right. And you can sell it for however much. But the approach is when you are expecting to receive balance in your life in order to practice something, if you are trying to become a pageant winner, if you're trying to become someone, you go on stage in a bodybuilding competition, those things are not going to require balance if you're going to be an ultra marathon runner. If you're going to do an ironman, you have to spend an absorbent amount of time focusing on those things for a period in time.
I think it is that high intensity. But there's two things I wanted to bring up. One is consider things in those more intense season that you're building a balanced life, not a balanced day.
So if your vision requires you level up from where you are to where you want to be, from where you are to where you want to be, then it's going to take this much extra effort to go from here to here. You're already doing all these things and you want to do all these things. You got to put in all this extra effort to go from one to the other. Do you still have to put in the time that it took to go from this level to this level? Do you still have to put in those seven months?
That's such a good question. It's a really good point too. It's a really good point because I don't think a lot of people think about that where they think, oh, I have to be obsessed to win. It's like initially you do, you have to be. You have to create a standard and a mental paradigm to a level. But once you get to that level, then it's a little bit of maintenance. It's not as intense.
Not at all.
Yeah.
Not at all.
Correct.
You can do this in your sleep.
Absolutely. So now. Yeah. So seven hours a day. No, I don't have to do that anymore. I can, I love to every now and then just sit down in my room and just trade for seven hours a day is amazing. But I don't have to. I have the ability now that I can look at something when I. When I pull up a chart and one of the best in the world at speed and accuracy within three seconds, I can get a pretty good idea of a longer term perspective of almost exactly.
Oh, is that a God given gift you just woke up with?
No, not at all.
I don't believe that at all. Everybody. You're just so gifted at real estate. I'm like, no, I'm hard focused. I put in the effort, I put in the time to gain it. Now it's easy.
Yeah.
And beware when you dare call something hard. When I think something is hard, I think of those poor guys in Texas paving roads. I think that would be really hard.
That's hard.
I think that would be hard. I think Roofing would be really hard. But what I get to do is only difficult because I don't know what I'm doing. I want you to ask yourself that, am I calling this hard because it is hard, or do I just not know what I'm doing yet? Therefore, I'm afraid. And that fear makes this emotionally more difficult than the action of click, click, click, click.
Buttons, trading.
Correct.
It's insane. It's mentally hard. Is it actually hard? No. Gah. The second thing I wanted to say is even in those intense seasons of going all in, under no circumstances do you have to sacrifice your relationships or your body. It's still a matter of focus. If you're sitting behind the computer learning trading, you have to eat well. You could grab a bag of Cheetos or you could have your food meal prepped for the week. You shop one time, you cook for three hours, your meals are done, you warm it up, you're ready to go. So you could still be choosing to be not intentional and lazy about that, or you could understand, food is medicine. I'd rather eat the right food than take medicine later. And this is healing my body every day. So you don't have to be an idiot on any of these seasons. And how long does it take to write a note to your significant other telling them how much you love and appreciate them?
Yes. While you're doing that. Precisely because you can spend time again, seven hours or whatever, really, really go at. But then taking a very, very direct, intentional, passionate, emotional three minutes.
You can do it while you poop. Yes, you can do it while you poop. Can't go anywhere else.
There's a lot of things you can do during that time.
Instead of scrolling Instagram, write a love note, order some sweet thing on Amazon and let it show up at their house with a cute thing. The little thoughtful crap is what people need. It's really not even quantity, it's quality of understanding. Your still priority. You're still on my mind, you're still important. And I'm gonna find your love language and do those little touches every single day. It doesn't take that long.
It's a beautiful point. And those are the times where you're out. You're so right. You're so right. Because you have that ability, you have that functionality. And with all the technology that they have on a day to day basis, it's easy.
You can set an alarm.
It's so simple to do that, have a reminder message.
So and so I love them. Yeah, I talk to my mom every Day. I'm the most involved family member of all six. I'm at every single one of their most important events. Am I there to have breakfast with them seven days a week and go to all their things and come watch the Bachelorette? No. But am I at every graduation, every wedding, every anniversary? Am I at the Christmas party? Am I at our little family dances and bonfires and celebrations? Absolutely. So I put in the maximum effort to make sure I'm there for the most special times. I'm the person they can call, person they can lean on, number one. Guess who's the busiest one.
And when you're there, you're gonna be really present.
Yep.
Because you're gonna say you plan it in advance. You think about it and go, all right. In order for me to be there and be super present, I'm gonna knock out two days worth of work in eight hours, and I'm gonna be massively efficient and just like, boom, boom, boom, boom. Hit it hard, go for it. Go quick, get everything completed, and then be there. And then put my phone down, rest, relax.
When I show up, I have a little present or some picture printed off or something thoughtful. With me, it's the little dumb crap that it doesn't. It's not dumb. It matters, but it's not that hard. So again, it's hard to be a good wife and blah, blah, blah, blah, blah. It's not. It's the little things. And you ask them. It's called communication. With what is the most important thing to you every day? How can I make sure I'm present and there for you every single day and you feel most loved by me? I'll make sure I do it.
Yeah.
Hell or high water, that's it. No matter how many fires are burning and how many contractors went crazy that day, I still do the little things because relationships are primary. Who cares how much money I have if I have no one to love me? Now? They, on the other hand, have to be understanding. They have to be amazingly aware at.
Not thinking. You have an extra eight hours a day during that season and not thinking you're gonna come to, you know, watching the football game all Sunday afternoon. You know, if they really love you, they understand your goals, they understand your family goals, and they are supportive and encouraging. But that is communication.
It is. It's communication, and it's time optimization, is being able to plan 100% and being able to create. And I think our listeners love some ideas, tips, and tricks on how to optimize their time.
We're the best at this.
Yeah, we are. So you're probably going to want to listen to the next episode as we talk about that.
Lithuania. If you want to take us to number one, you are going to have to rate, subscribe and continue sharing and listening to Broke to woke season one, season two, and maybe even season three.



