90-Day Lag Rule

What is the 90–day lag rule? Well, I’m glad you asked…

A few years ago I was watching a video from Ed Mylett (link below) where he talked about the echo of life.

“Your actions and behaviour 60-90 days ago impact your results today”

That really resonated with me, especially in the trading world. 

We all want these quick results but in reality, it’s sticking to your process, sticking to your plan and your rules with consistency that give you the best results.

But we don’t see that impact immediately.

We see that in our equity curve 2-3 months down the line.

I believe this is why many traders quit.

They have a tough time so they double down on discipline and professionalism. When that doesn’t seem to have an immediate impact they throw in the towel. “I’ve tried everything now” but nothing is working.

But it’s the commitment to stick to something for several months that yields the results.

We know this in most areas of life. You can’t choose to lose 15 lbs and expect to see results on day 1 after a gym session! The results are gradual, you start seeing progress a few weeks in, and then that motivates you to continue and it snowballs from there.

The same is true for trading.

Today, think about how you can leverage this ‘lag rule’ to your advantage.

What could you implement right now in your trading that you’ll see the results from in the next three months?