13 Sep 20/80 Rule
The 20/80 Rule
It’s always good to have a moment of reflection. Especially so when trying your hand at a new business. Many a times we get caught up in just completing tasks and staying busy. Thinking we will get to our goal closer if we just somehow run through all these tasks as fast as possible. Some of you might already know what I am going to get at but for those that don’t… I’d like to introduce the 20/80 rule.
Click here for my disclaimer. It basically says that I am on my path to becoming a trader and these are just my opinions on how to approach learning to trade. Feel free to check it out and comment on it.
Here it goes…
The 80/20 rule??
So what does is this rule exactly? It believes in the principle that 80% of your effects come from 20% of your causes. Want to know more about the origin and other cool details and facts about how this rule comes back in nature, science, economics and other cool areas of life, please visit the Wikipedia page on the Pareto principle. This rule can be applied to almost anything. When you truly understand this rule you will see that you don’t ‘need’ everyone around you. That you don’t ‘need’ to do anything that doesn’t get you closer to your goal.
The reason this matters is that we all need some cues to tell us if we’re on the right path. Many times we simply add tasks to our to-do lists but never stop to wonder if they all have the same urgency and priority of being completed. Ask yourself this simple question. Is this task getting me closer to my goal, or is it just keeping me busy. You might have heard about this ‘busy’ culture where it is the hip and cool thing to say to people. ‘Oh, I really want to, but I can’t. I’m busy.’ Busy doing what? If it’s to complete insignificant tasks you might as well go have dinner or that drink with a friend. Then on the other side there are things that we think we need to buy or otherwise spend money on. Things that we think will get us close to our goal. That new computer. Or that new course. Whatever it is. Just think about this. Most of the things we want, are luxuries. Not necessities. That course you want to take? Someone took the time to learn it and then choose to teach you for a fee (of course). I’m not saying that you have to reinvent the wheel. But damn sure try and don’t get caught up in the ‘easy fix’ mentality. Let’s get to it.
In order to know what does deserve our ‘busyness’ we need to determine our goal first. Have a vision. This is a personal matter but since you are on www.bearmarkettrader.com I’ll assume it’s got something to do with trading. At least for my example. It can look something like this:
My goal: to become a successful trader (some of you might know that I actually changed it, read more on that here)
I use Trello for basically everything. If you don’t know what that is… Just click here! It helps me to organize my thoughts, work, journals, anything in need of writing and keeping organized. But you can do this on a sheet of paper or anything else.
I have two categories that you might have guessed. The 20, and the 80. Genius!
Here I write the tasks that actually get me closer to becoming a successful trader. Tasks like:
- Learn about candlesticks and chart patterns
- Learn on how to keep a trading journal
Under the 80 category I will write tasks that have no urgency but would be nice to do at some point. I’d like to plan in one day a month to go over these. Then I pick a task that I think is the most important and do that on that day. These could be tasks like:
- Change the layout and colors of my blog
- Choose a font for the website
- Use a certain plugin
The intention is to focus on what actually matters. I find that it’s a form of self-sabotaging to be busy with these ‘80%’ tasks. You are postponing what actually needs to be done. Perhaps deep down you know that that’s what you’re doing. If not? Then let me be the one that tells you. You, are your own worst enemy. Especially in trading. Never forget that. To be a master in trading, you need to master yourself.
Now go hurry along. Be a master!
Thanks for reading. Please leave a comment or contact me even if it’s just to say hi or I stink. Hope you’re doing great. And happy trading.