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Welcome to The Weekend Trader, a weekly newsletter where I provide actionable ideas to help you build a healthier, wealthier, and happier life through investing, even if your time is limited.

Today at a glance: 

This week's newsletter was inspired by a letter written by Sahil Bloom whose newsletter The Curiosity Chronicle reaches nearly 225,000 subscribers weekly. 

The Oxford Languages English dictionary defines luck as "success or failure brought by chance rather than through one's actions."

Perhaps there's more to luck than just being in the right place at the right time.

Sahil says the best framework he's seen for luck is: Type 1 - Blind Luck, Type - 2 Luck from Motion, Type - 3 Luck from Awareness, and finally Type - 4 Luck from Uniqueness 

How you can get rich without getting lucky. 

How to Get Rich Without Getting Lucky

In a world where the lottery is now $ 1 billion-plus, most of us are led to believe that only those who are lucky get rich. 

This couldn't be further from the truth and I believe that this kind of limiting belief is what creates scarcity in our lives. 

You can not be attached to these kinds of beliefs and receive the kind of abundance that you are looking for. 

The Oxford Languages English dictionary defines luck as "success or failure brought by chance rather than through one's actions."

However, you don't have to look very far to get some differing opinions about what luck is. Just Google "luck" and you will find various quotes like these:

"You make your own luck." - Earnest Hemmingway 

"I broke a mirror in my house. I'm supposed to get seven years of bad luck, but my lawyer thinks he can get me five." - Steven Wright 

"No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you. All that matters in business is that you get it right once. Then everyone can tell you how lucky you are." - Mark Cuban

Perhaps there's more to luck than just being in the right place at the right time. 

Maybe luck is something that you can create. 

Today, we are going to step through the best framework that I found on luck.

4 Types of Luck 

According to Dr. James Austin who published a book entitled Chase, Chance, & Creativity: The Lucky Art of Novelty, there are 4 Types of Luck. 

1. Blind Luck 
2. Luck from Motion
3. Luck from Awareness
4. Luck from Uniqueness

Here's a quick breakdown of each type. 

Type 1 - Blind Luck 

Good luck that comes by a complete accident is considered blind luck. With this type of luck, there is no effort on our part it just happens. 

Type - 1 luck is just random. A good example of the type - 1 luck is winning the lottery. 

Type 2 - Luck from Motion 

Type 2 luck is a result of some action you are taking. Through your action and energy, you are setting into motion greater possibilities for yourself with a higher probability of success. 

A good type 2 luck example would be: You finish college. You start a new job, and then you open up a 401K. You start depositing money into your 401K because you want to save and invest for your future. As it turns out, you started investing at the bottom of a market crash. You build up a nice nest egg. Recognizing that what you are doing is working, you continue to allocate more and more of your income to your 401K and ride a 7-year bull market to $300,000. 

Type 3 - Luck from Awareness 

This type of luck starts as a faint clue that presents a potential opportunity that you can recognize because of your depth of knowledge and understanding about a specific area of interest. 

This knowledge and awareness allow you to position yourself to take advantage of opportunities that present themselves. 

Example of Type 3 luck: Because of your 401K results and an interest in the financial market you've been studying how to invest and trade growth stocks for a few years now. Up until now, you've had limited success trading but you prepared to capture the next monster stock. You notice a company called Tesla in the up-and-coming EV (Electric Vehicle) space so you decide to establish a core position in the stock and add to it on the way up. Over the next couple of years, the company's positive sales and earning growth push that stock up 10 fold and you make $1M. 

Type 4 - Luck from Uniqueness 

This type of luck comes to you because of who you are, your personality,  and your unique set of abilities. 

In this case, you attract luck because of who you are. 

Example: You've spent years tinkering with machine AI trading (way before hedge funds started using it). The passion that you have and the expertise you've gathered earn the interest of several venture capitalists that you invest with to create a product that you sell to institutional investors for millions. Your passion and unique interests attract luck to you. 

To help you remember the stages of luck here is a neat infographic.

Stages of Luck 

Typically luck will arrive to you in stages throughout your life. 

Stage 1 - During the early part of your life, you are more likely to experience Type 1. 

Stage 2 - In your 20's, much of your luck is derived from Type 2. 

Stage 3 - When you are in your 30's Type 3 is more likely to come into play. 

Type 4 is not very age dependent because our interests, personality, and uniqueness are not qualities that grow linearly. 

My Luck Mantra 

As a useful rule of thumb for your journey: 

"Remember that luck is putting yourself in the best possible position to get lucky."

How to get rich without getting lucky by @Naval (click to see full thread)

What happened this week?

This week I began work on my new course helping busy business professionals stop the bleeding in their retirement accounts and earn financial freedom faster than they ever thought possible. 

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