Recently, I heard a very interesting story…
It was about a guy who worked at a restaurant during a management shift.
And he said that when the new manager came in, he did something very odd…
He told all the workers to continue doing exactly what they always did and he simply observed and took notes day after day.
Then, eventually, he came in with a master list of improvements, systems and operations that he was going to implement to turn the business around.
Interestingly, almost all of the changes were things we’d deem as “small”
One that sticks out to me in the story is that normally the workers would scoop butter out of a tub and throw it in the garbage. His new policy was that they needed to use a spatula to get all of the butter out of the almost empty tub and add it to the new tub (as a steak and potato restaurant he tells me they went through A LOT of butter).
Other things like setting up the food in a different order for the waiters to take out, utilizing less electricity in day to day activities.
Again, all small stuff. Things that could not possibly have made more than a few hundred dollars per month of a difference which seems like nothing for the expense total of a fairly large business.
And yet, when you add scores of little improvements together, you end up with an incredible change.
Just think about it…
If the business makes 50k per month and spending 48k it is a struggling business. Essentially operating “paycheck to paycheck” for lack of a better term.
But if you then make 20 or 30 changes that save 50 or 100 or 200 dollars each, all of a sudden you are saving 3k-4k per month.
And your net revenue is doubled or tripled!
And it is the exact same thing with trading.
Most people think they need a new strategy or a new system or trade a new market, etc.
They want to overhaul their entire investing approach because things aren’t working.
More than likely, it is a matter of making small changes, one after the next until you’ve optimized your investing to turn a profit.
I am talking about avoiding little mistakes, holding onto trades a bit longer to hit your tp instead of clicking out early, etc.
Most traders don’t care to optimize and practice their system over time with small adjustments. They simply want something that works.
But trading is like a business and you have to work at it and make one change at a time if you want to boost your profits just like any business does.
Just my thoughts for today,