When the stock market is etching new all-time highs, it's easy to look at our P&L and decide we're geniuses.
Soaring profits feel like irrefutable proof that we're great at what we do, right?
Not necessarily.
There's a lot of luck involved in trading and investing. Now, I'm a firm believer that we create our own luck through preparation and positioning. But the final results? They're out of our hands. The market determines the outcome, and whether good or bad, there's always luck involved.
When markets are making new highs, you see a lot of chest-pounding on FinTwit and wherever else you consume market content. In some ways, it's natural. Making money is exciting. And if we can't celebrate the good times, what are we even doing here?
But when things are going well for you, I'd like to invite you to look inward.
Don't celebrate the profits. Celebrate the processes you've followed to get to this point. The intuitive hunches you trusted. The bad habits you've managed to quell. The discipline you've maintained when emotions were screaming at you to do something stupid.
More than being a genius, it's likely you've been diligent about following a plan. You've been course-correcting when your instincts kicked in. You've sized positions appropriately. You've cut losses when necessary and let winners run when the setup called for it.
Those are the things worth celebrating.
Because here's what I know after nearly three decades in these markets: the profits are temporary, but the process is permanent. Good processes can weather bad markets. Bad processes will eventually blow up even in good markets.
The market doesn't care how smart you think you are. It doesn't reward intelligence as much as it rewards consistency, discipline, and the ability to adapt when conditions change.
When we focus on our craft—really focus on doing the work right—the outcomes tend to take care of themselves. Not always in the short term, but over time, good processes compound just like good investments.
So by all means, enjoy the good times. Feel grateful for the wins. But remember what actually got you here.
It wasn't luck. It wasn't genius.
It was showing up every day, following your plan, trusting your instincts, and staying disciplined when the market tested your resolve.
Celebrate the process, not the profits.
The profits are just the scorecard. The process is the game itself.
Sean McLaughlin | Chief Options Strategist, All Star Charts
