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Sunday, April 27, 2025

How Coaching Resembles Stock Trading

Life and literature suggest analogies for coaching. Listening to a Blinkist analysis of "The Little Book of Market Wizards," students find abundant comparisons. Judge for yourself. 

1) "Match the method to the man." Managing money is first about managing risk - the risk of permanent loss of capital. The "permanent loss of capital" in coaching is losing your job. "High risk" appears in the form of character deficiency in individuals or in team culture. 

Authenticity matters and every coach must navigate that path among relationships, player development, strategy, and game management.

2) Persist through failure. Immediate success doesn't occur in trading and didn't occur for Dean Smith or Mike Krzyzewski. The "Wizard of Westwood" John Wooden didn't win an NCAA title at UCLA until his 16th season. 

Coaches need a supportive environment to help them succeed. Be aware that not everyone wants a new coach to succeed or an older coach to stay. 

3) Manage risk first. "Risk control reflects humility, which is essential to success." Risk management includes establishing meaningful relationships, a clear philosophy, and successful culture. 

4) Cultivate patience. Player and team development take time. Winston Churchill said, “I have nothing to offer but blood, toil, tears and sweat. We have before us an ordeal of the most grievous kind. We have before us many, many long months of struggle and of suffering." Adding value takes time. Teaching players the game takes time. Teaching teams to win takes time. 

5) Remain flexible. Coaches have options including fitting systems to players or fitting players to systems. Small, fast, athletic players won't do as well in a slower half-court offense as in transition. When you cannot 'recruit' players for your system, you must solve the problem of using available talent. "Control emotions. Fear, ego, impulse, and adrenaline are invisible enemies."

6) Control emotions. Trading and coaching both rely on self-control. You can lose money and you can lose relationships through frustration, bias, and anger. Our words and our actions reflect our ability to maintain composure and control of our decisions. 

7) Cut losses. Let winners run. Kevin Eastman teaches, "do it better, do it harder, change personnel, or #$%& it ain't working (change strategy)." 

Return to Bill Belichick's four winning values:

  • Do your job. 
  • Work hard. 
  • Pay attention to details.
  • Put the team first. 
They cross every domain. 

Lagniappe. Follow this thread. 

Lagniappe 2. Add constraints (time, numbers) to boost performance. Adjust distance for age and skill. Practice with a partner. 

 


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