Trading Mindset: The 90-Day Lag Rule
And How It Influences Your Equity Curve
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 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.
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.
It’s the commitment to stick to something for several months
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.
What could you implement right now in your trading that you’ll see the results from in 3 months?
You were BORN to do something GREAT
Here’s that excellent video from Ed Mylett. It’s worth watching it all, but if you are short on time, skip to 5:17 and watch for a few minutes.
Now tell me, what will you commit to doing for the next 60 days?