Weekly Perspectives: The importance of perfect practice and The 3 Rules of Deep Practice

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Hi Traders,

Reminder: We’ve started up a Facebook Group for the Meetup group.
Come join in on the discussion here –


Weekly Commentary –

Similar to last week, this week we saw slightly bearish action to start the week on the Dow and S&P, however after all was said and done the week ended up slightly positive and firmly in the same trading range we’ve been channeling in since December.

Interestingly this week the Russell 2000 index broke to all time highs. It appears risk is back on.

A glance on the major sectors show us that all the major sectors are still is strong uptrends with the Consumer Discretionary sector attracting buyers.

The major sectors are posted here on Finviz for your viewing pleasure –

Guidance for intermediate or longer timeframe traders – continue to overweight your longs.


Discussion of the Week – The importance of perfect practice and The 3 Rules of Deep Practice

Neuroscience has shown us that the brain is an adaptation machine.
You and I are constantly improving – the problem is that we may be improving at the wrong thing.

Through the lens of the brain as an adaptation machine, everything is a skill.
So whatever you practice you’re going to get better at.

Unfortunately our brain cannot distinguish between what is good practice and bad practice.

So if you practice being distracted all day long, by constantly checking your email, social media, and every pop-up on your phone – you are going to get better at being distracted and unfocused. Now do you really want that?

Show me how you practice, and I will tell you how successful you are.

This week I was re-reading “The Talent Code” by Daniel Coyle (#28 on my Top Books list) and I came across one my favorite passages of the book dealing with the idea of Deep Practice.

When we watch a talented person perform we’re often in awe of how fluid and elegant their performance is and how easy they make it look.

Yet behind every apparently effortless performance is a lot of deep practice, which is characterized by the following 3 factors.

The 3 rules of Deep Practice

  1. Chunk it up
  2. Repeat it
  3. Learn to Feel it

First to practice a particular task or action efficiently, it needs to be chunked up.

This means looking at the task as a whole, then breaking it down into very small units. By intensively examining and learning these tiny units, you gain a deeper understanding of each crucial component of your skill. Doing this usually involves slowing down the pace of the action. By repeating a movement slowly, you enable yourself to both perform it with more precision and identify mistakes that need to be fixed.

Second, deep practice requires time, since increasing a particular skill demands a lot of repetition. The more we repeat a task, the more precise and quick the action will become because the myelin layer surrounding the relevant circuit thickens.

Third, engaging in deep practice means making things a little difficult for yourself while practicing. Because repeating something you already know inside out doesn’t improve your skill. Instead, you must always practice just beyond the limits of your ability. Even though failing at something difficult can be uncomfortable for us, it’s actually the only way to improve.

Now let’s take these concepts, and let’s apply it to your trading.
Spend some time and think about your existing strengths and weaknesses and ask yourself where can you get deeper with your practice?
Maybe it’s around order entry, trade management, or perhaps taking action at key decision points?

Love to hear your thoughts, let’s keep the discussion going!
Click here.

Happy trading,



Weekly Perspectives: The importance of perfect practice and The 3 Rules of Deep Practice

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