85% Trading Strategy | PB Trading University LITE 43/50

Have you ever wondered why pushing yourself to the absolute limit doesn't always translate to peak performance? This lesson explores the intriguing concept of the 85% trading strategy, a philosophy inspired by investing, sports psychology, and the pursuit of consistent trading success.

May 7, 2024
Meta Matt
Class Video

85% Trading Strategy

I’m Meta Matt, Director of Education and welcome to PB University LITE! This is a 50 Class Trading 101 Series geared towards both new and veteran traders alike! We go over everything from Trading Psychology, Technical Analysis, and Options Trading to Commodity Trading, Forex, and more!! This 50 Class series is not designed be taken in order, it is instead designed for traders to browse and pick which classes interest them. I will include the list of classes at the bottom of this page.

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Trading in the Zone: Why Less Can Be More

The 85% strategy challenges the conventional notion that maximum effort equals optimal results. Instead, it draws inspiration from legendary figures like Warren Buffett and Carl Lewis, who exemplify the power of calculated action.

  • Warren Buffett: This master investor doesn't deploy his capital at full capacity. He operates around 85%, recognizing that peak performance often arises from a strategic and composed approach, not from frantic activity.
  • Carl Lewis: The Olympic champion didn't expend all his energy at the starting line. By pacing himself at 85% capacity, he conserved energy for the crucial moments, achieving remarkable victories.

These parallels translate beautifully to the trading world. Just like Lewis pacing himself for a winning race, traders can benefit by prioritizing quality over quantity in their trades.

The Art of the 85% Approach

Integrating the 85% strategy into your trading routine requires a shift in mindset and practice. Here are some key steps:

  • Calculated Allocation: Instead of going all-in on every trade, dedicate 85% of your trading energy to well-considered moves. This allows for risk management, adaptation to market changes, and a sense of composure.
  • Tame the Emotions: The 85% approach is all about maintaining composure and avoiding emotional decisions that can lead to burnout and significant losses.
  • Quality Over Quantity: Focus on absorbing 85% of the most relevant information during market research. Don't get bogged down by information overload.
  • Structured Execution: Just like Lewis's race form, strive for well-executed trades that align with your established strategy.
  • Embrace Imperfections: Don't get caught up in the pressure of achieving perfection. Focus on a structured approach without the burden of always needing to win.
  • Recognize Your Limits: Know when to step away. Leaving a trade or taking a break prevents burnout and impulsive decisions.

The Power of Balance

In a world obsessed with maximizing everything, the 85% strategy offers a refreshing perspective. It emphasizes the importance of finding the right balance between intensity and control, precision and adaptability.

Embrace the 85% Mindset

Let go of the pressure to constantly achieve 100% win rates. Instead, embrace the calmness and power of trading at 85%. This approach fosters strategic decision-making, resilience, and ultimately, greater peace of mind throughout your trading journey. Remember, in trading, as in life, it's often the subtle balance that leads to the most rewarding outcomes.

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PB University LITE Class List

1) Trading Terminology
2) Stock Market Indices
3) Common, Preferred, and Penny Stocks
4) Diversification of Assets
5) Fundamental Analysis Made Easy
6) Technical Analysis Made Easy
7) Risk Management In The Market
8) Portfolio Management
9) How To Follow Market News
10) Trading Psychology
11) Options Explained
12) The Greeks In Options Trading
13) How To Short Sell Options
14) Covered CALLS
15) Spread Trading
16) Online Brokers for Options Trading
17) Implied Volatility Calculators & Tools
18) Protective PUTS
19) Iron Condors
20) Straddles
21) Reading Level 2
22) Taxes
23) Trading Psychology Techniques
24) The Art Of Trading
25) Becoming A Jedi In The Stock Market
26) Futures Trading Explained
27) Commodity Trading 101
28) Regulatory Environments
29) How To Become A Millionaire
30) $100K In 100 Days
31) Wash Sale Rule
32) Behavioral Finance Part 1
33) Behavioral Finance Part 2
34) 5 Charting Indicators
35) Fair Value Gap
36) Insider Trading and Market Manipulation
37) Stock Chart Types
38) Moving Averages 101
39) Base vs Precious Metals
40) Electricity Trading 101
41) Trading Brokers 101
42) 5 Trading Strategies
43) 85% Trading Rule
44) Are Win Rates A Scam?
45) Futures Trading 101
46) ATR Indicator Strategy With The Greeks
47) MACD Indicator 101
48) Bollinger Bands Indicator 101
49) Wedges, Triangles, Flags and Pennants
50) RSI Divergence 101

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