Last week, I read The Millionaire Fastlane by MJ DeMarco, a book that surprised me with its ability to provide practical tools for improving decision-making, not only in entrepreneurial ventures but also in seemingly unrelated fields like Sports Trading. Among these tools, one stood out for its immediate impact: the WADM Matrix (Weighted Average Decision Matrix).
This discovery came at the perfect time, as I had been experiencing a decline in clarity and precision in my final decisions over the past two months. As I explain in my book, Sports Trading: A Journey Through Competence and Mindset, my decision-making process relies heavily on elimination. I start with a broad range of options and, through thorough analysis, narrow them down to two or three possibilities.
The problem of the final choice
However, it was in this final phase that I encountered difficulties. Periods of mental strain, like the one I had recently gone through, led me to place disproportionate weight on minor factors, resulting in errors. This behavior, known as focusing bias, involves concentrating excessively on a single element while neglecting the bigger picture.
This is precisely where the WADM Matrix made a significant difference.
What Is the WADM Matrix and how to build it?
At its core, the WADM Matrix is a simple yet powerful tool for making rational decisions. It allows you to assign a specific weight to each important criterion and compare options in a balanced, entirely objective way.
Here’s a simplified table and step-by-step guide on how to build it:
How to Use the WADM Matrix Step by Step
- Define the criteria: List the factors influencing the decision (e.g., recent form, absences, tactics, etc.);
- Assign weights: Give each criterion a weight (e.g., on a scale of 1 to 10) based on its relevance;
- Evaluate each option: Assign a score from 1 to 10 for each criterion across all options;
- Calculate the total: Multiply each score by the weight of the corresponding criterion and sum up the results;
- Compare the totals: The option with the highest score will, logically, be the best choice.
A practical application of the matrix: Verona vs. Inter
Let’s take the Verona vs. Inter match from last weekend as an example.
Facing this event, my instinct would have led me to overemphasize the absences of Lautaro Martinez and Hakan Çalhanoğlu, two key players for Inter. However, by applying the WADM Matrix, I assigned realistic and objective weights to other factors as well, such as Inter’s recent form, squad depth, and Verona’s defensive performance.
The result? A more balanced decision that reduced the importance of those absences. The match confirmed this analysis: Inter won 5–0, with outstanding performances from the substitutes.
My reflections on this discovery
The recent discovery of the WADM Matrix positions it not just as a tool, but as a guide for rational thinking. This new approach allowed me to overcome focusing bias, significantly improving the quality of my decisions in Sports Trading.
Combined with the mindset and competencies I describe in my book, this method represents a significant step toward operational excellence. It’s a tool I recommend to all traders aiming to elevate their performance and refine their decision-making processes.
