Hey everyone, Kirk here again and welcome back to the daily call. On today’s call, we’re going to talk about the one thing that you have to do if you want to grow your portfolio faster with options. This is probably a hard concept for some of you because I know the type of person that you might be. If you’re listening to this podcast, you’re usually well-educated, you’re usually well-motivated, you’ve got a lot of high ambition, you’re very much probably like me because you’re listening to this and you’ve gone this far in our training or in our courses, etcetera. But here’s what you’ve got to do and this is what a lot of people I think still miss in this business or really, just in life in general and any area that you want to interchange options trading in. But you’ve got to slow down to speed up. That’s a hard concept to understand. I want to try to explain it maybe with an analogy that might help out with like a little case study. But back in school, what we learned all the time (you often do learn this) is that the assembly process or the assembly line is usually the most efficient. You connect part A to part B then you move on, you connect B to C, etcetera. What people often do is they try to batch a lot of their stuff. This is a problem because what happens when you batch… Let me explain what batching is. Batching is you connect part A and B together and you do it a hundred times. Instead of working through the entire process of let’s say building a widget from start to finish once, all you do is connect part A to B a hundred times. If you’ve got a hundred widgets you want to basically build, most people would say, “Connect part A and B and do it for all of the widgets, then move onto the next step and do step two for everything, then do step three for everything.” You batch these little processes or these little workflows together.
The problem with that… Most people assume that that would go a lot faster. The problem with that is that if you make a mistake later on, you have wasted time connecting part A and B and maybe that wasn’t the right thing that you should’ve done. Maybe there is a tweak to how you should connect it that you never really realized what happened until later on, that if you actually work through the process of building the widget, you would’ve figured out later on that maybe connecting part A and B should’ve required more glue or should’ve required a tweak to how you did it. But now, you’ve got a hundred things that you have to go back and redo. Does that make sense with that whole batching process? This is why people I think are not successful for the most part with trading options because what they end up doing is they end up trying to batch a lot of their education into very, very tight periods of time. They try to learn and cram all this stuff in like, “Okay, I got to do this, this, this, this, this, this, this.” They try to do this whole system of training and education in a very short period of time and what they’re really trying to do is just check boxes. Checking the box only gets you so far. “I completed this.” only gets you so far. It’s not about completion. It’s about understanding. Did you understand what you actually were trying to complete in that course or the video or the trade example? What was the lesson in there? What was the takeaway? What’s something that you don’t understand that you still have to maybe slow down and understand before you can move forward and go faster?
The end result here is that when you’re actually… In the example of building out widgets, if you need to build out a hundred widgets, it’s actually faster initially to slowdown and build one or two or five widgets all the way through to completion to make sure that you’ve got your process down in its path and it’s streamline and easy, there’s no hiccups, you can get all the way to completion. By doing that, you build less widgets initially, meaning you are not as fast as the other person who’s doing all this batching of their… they look like they have more activity because they’ve got a hundred parts connected for step one and you’re just still completing that first widget all the way through the process. But what ends up happening is you end up catching up to them because they have to go back and adjust, they have to go back and tweak or undo or redo all of the widgets that they built. I constantly see this all the time. I see people who just rush through all the training and they email me and they’re like, “Kirk, I completed all the training in a week.” I’m like, “There is no way you completed all of that in a week. You might have checked all the boxes, you might have clicked through all the videos, but you didn’t retain anything in one week. That’s like getting a college education in one week. It just doesn’t happen.” You have to slow down in this business if you want to speed up. You have to be the tortoise, the turtle, whatever analogy you want to use because you have to understand a concept before you move forward. What I always tell coaching clients when I get on the phone with them… I get on the phone with a lot of people and they end up talking really, really fast and they’re really excited and I get that, but they go through concepts and I take a step back and I’m like, “Wait, wait, wait. Let me make sure you understand what that is. Again, explain what Delta is to me.” They really can’t even explain it sometimes or whatever the concept is that we’re talking about.
What I think you should do in your options trading if you want to grow your portfolio faster is slow down, really understand the concept then move forward to the next concept. It might take you for some concepts, a week. Here’s a concept that you should really understand. You should really understand how our edge works in the market with implied volatility. That’s a hard concept to understand. You can’t learn that in one single video and just check the box. It might take four or five different videos. It might take a couple of examples, watching a webinar about it. But then once you understand that concept and you really master it, then everything else can fall into place, so then you can check that box and move onto the next one. It might feel like you’re not going as fast, but believe me, when you understand and master some of these concepts, really, anything in trading or anything in life and you really understand them, then you can move onto the next thing, you don’t have to backpedal. That’s what kills people, is the backpedalling to re-understand something that they thought they learned previously. Hopefully this helps out today in getting you on the right path in understanding how you can use not only training and education, but this thought process of working through these workflows can help you get to where you want to go just a little bit faster. As always, if you guys have any comments or questions, let me know. Until next time, happy trading!