Momentum: The Magic Behind Every Winning Streak
Getting started is hard. But once you're moving, momentum makes success almost inevitable... in trading, business, and life.
What Is Momentum, Really?
In the Momentum chapter of The Compound Effect, Darren Hardy paints a simple truth: success doesn’t come from one huge leap, it comes from a lot of small steps, repeated consistently until they build up unstoppable momentum.
He compares it to pushing an old-school merry-go-round at a playground. The first push takes serious effort. So does the second. And the third. But with enough pushes, something magical happens: it begins spinning on its own. Now it takes barely any effort to keep it moving.
Momentum is when consistent effort turns into self-sustaining progress. It’s what separates those who start from those who succeed.
The Real-Life Examples from the Book
Let’s break down a few examples Hardy shares to bring this to life:
The Entrepreneur Who Burned Out
Hardy talks about a successful entrepreneur who had built a million-dollar business by sticking to a strict schedule: early mornings, personal development, structured habits. Over time, he decided he’d “earned a break” and stopped waking up early, stopped reading, and stopped journaling.
The result? His momentum vanished. The business stalled. His motivation dropped. All because the routines that built his success were abandoned.
Trading tie-in: When you skip your morning analysis, your journaling, or your routine checklists (even for “just a day”) you’re letting friction slow down your flywheel. One skipped habit leads to another, and suddenly, your edge disappears.
The Iron Discipline of Jerry Seinfeld
Hardy also brings up the famous “Don’t Break the Chain” method popularized by comedian Jerry Seinfeld. Seinfeld’s trick for writing new material was simple: write one joke a day and put an X on a calendar. After a few days, he had a chain, and his only job became not breaking it.
Trading tie-in: You don’t need to win every trade. You need to show up and execute your process every day. The chain isn’t wins… it’s showing up, reviewing your strategy, and trading your setup. That’s what keeps momentum alive.
The Club vs. The Gym
Hardy gives an example of two types of people: the person who gets pumped for the new year, buys new workout gear, and hits the gym hard for two weeks and the person who quietly starts walking every morning, slowly builds up their workout routine, and sticks with it for six months.
Guess who’s in shape come summer? (Hint: It’s not the one with the flashy start.)
Trading tie-in: Most new traders want fast gains, big plays, and flashy results. But they flame out because they lack momentum. The consistent trader who studies charts, journals losses, refines their strategy, and takes one solid trade per day? That’s the trader who compounds into success.
The Momentum Killers: What to Watch Out For
Momentum is powerful, but it's also fragile. The moment you stop, friction kicks in. Here's what kills momentum:
❌ Skipping routines because “I’m too busy today.”
❌ Jumping to new strategies every week (no compounding effect!)
❌ Letting one bad trade spiral into revenge trades
Hardy’s Rule: “You will never change your life until you change something you do daily.”
You can't afford to keep starting over in trading. Build your routine. Stick to it. Let momentum take over.
Momentum in the Market: How to Use This Today
Let’s translate all this into a trading framework:
Daily Action
Without Momentum: Inconsistent. Skips reviews, trades randomly
With Momentum: Charts reviewed daily, trades planned ahead
Emotions
Without Momentum: Reacts emotionally. Chases trades
With Momentum: Clear-headed. Trusts process
Results
Without Momentum: Wild swings. Burnout.
With Momentum: Steady growth. Confidence.
Discipline
Without Momentum: Feels hard. Constant willpower.
With Momentum: Feels automatic. Habitual.
Momentum is what turns “ugh, I don’t feel like it” into “this is just what I do.”
Darren’s Wisdom, Trading Edition
Hardy says:
“When you make self-discipline a habit, you’ve won the battle.”
LLTM version:
When you make your trading process a habit, the wins come naturally.
The secret isn’t in a better setup. It’s in showing up — every single day — long enough for your momentum to carry you.
Wrapping Up
Momentum is more than a motivational buzzword… it’s a strategy. It’s what happens when discipline compounds into habit, and habits turn into results.
So if you’re feeling stuck, don’t look for a new trading strategy. Look for your next push. Start the wheel. Build the chain. One habit, one trade, one win at a time: that’s the real power behind the compound effect.
Quick Glossary:
Momentum: The power of sustained movement built from repeated action. In trading, it’s the force that makes routines automatic and success more likely.
Compound Effect: The result of small, smart actions compounded over time to create massive results.
Don’t Break the Chain: A method for building consistency by completing a daily task and tracking it visually to maintain momentum.
Discipline: Following a routine even when you don’t feel like it is the key to building momentum.