This post is dedicated to the Gems of Trading Wisdom that you should apply to your trading as much as your life. Wisdom is supreme so get wisdom at all costs. Your hunt for wisdom should continue throughout your life. It should be one of the most important things that you value and strive to get.
Much of the wisdom that makes you successful at trading resonates deeply with spirituality. Much of it resonates with life itself!
Gem 1 - The founding principle of spirituality is to surrender to the Divine with the heart of a child. Become one with the Universal Power and let Him drive you. That is the key to lead a blessed and fulfilling life.
Similarly, you need to surrender and bow to the market. No anxiety and no rush - let your senses be in complete harmony with the market’s rhythm. Listen to the market. Trade what the market tells you, not your opinion. You will then discover the abundant bounties that the market has to offer you.
Gem 2 - Thoughts are powerful! They can make or break you as a trader similar to how they affect your mental and spiritual well being. You need to be an objective observer of your own thoughts to quickly change the flow when you catch thoughts that feed your bad habits - anger, greed, attachment, lust and vanity. That is the pathway to spiritual purity and your mental well being.
Similarly, in trading, your thoughts are the foundation to your emotional resilience. You have a good trading system with an edge. But you find it difficult to stick to it at times because of negative thoughts originating from greed, fear or anger. Observe your thoughts to filter away negativity. Once you practice doing that every time, it will deeply impact your trading results.
Gem 3 - Discipline v Greed. Every trading day is a fierce battle between Greed and Discipline in the life of a trader. You live to fight another day if Discipline wins today!
Gem 4 - Honesty v Hope. Be brutally Honest and Truthful with yourself in your trading and you will survive your mistakes. If you allow Hope to enter the equation, know that it kills in the market.
Gem 5 - Humility v Pride. When you make a trade, you obviously think that you are right. When the market goes against you, be Humble enough to swallow your Pride, admit that you are wrong and exit. Pride does not let you take smaller losses which eventually leads to bigger losses.
Gem 6 - Steady v Hasty. Take something from the market every day. Build your wealth slowly and steadily. Steady plodding bring prosperity; Hasty speculation bring financial ruin.
Gem 7 - Diligent v Lazy. Do not be Lazy. Wealth from hard work and Diligent effort grows; laziness brings poverty. Use all the tools at your disposal. For example, prepare well for your trades using the trade selection and money management tools. They ensure your financial well being.
Gem 8 - Patient v Impatient. Patience is a virtue in trading as long as it is well placed. Be very Patient in entering trades - use trade selection to filter trades, think hard to trade only well formed setups and chart patterns. Once in the trade, be very Impatient to exit trades that do not go your way.
Gem 9 - Always be hungry to learn. Learn new things in trading from books, seminars, other traders. Learn to get a feel of the markets and their behaviour. Learn from your mistakes. Become wiser. Do not be a fool to ignore learning.
Gem 10 - Do not take a financial or emotional beating in the market as it undermines your self confidence and depletes your ability to take trading decisions. Small losses are fine but never let a small loss become bigger because of your pride or your laziness. Understand and practice preservation, of both your capital and your dignity, to stay alive. If you stay alive, both financially and emotionally, you could ultimately win in the market.
THAT IS THE BIG SECRET OF MAKING IT BIG EVENTUALLY!
Gem 11 - Do not worry about losing money on any one trade or even a series of trades. Always consider Process (your Trading System and its Rules) as greater than Money. Consider money as raw material to execute the process and nothing more.
If the market were to be considered as God, think of the process as a way to pray to the God to please Him and reward you as a devout follower and believer. One big win will take care of a series of small losses.
Gem 12 - Trade with a free and relaxed mind! Do not trade if you have any stress on your mind, be it do with your family, work, health, money or anything else. Do not trade with borrowed money or money that you are scared to lose. Do not trade if the trade does not feel right.
You do not need to take every trade or even trade every day to make a fortune. Take holiday breaks to recharge your batteries. In trading, less is more! What is important is your ability to take sound trading decisions when you trade. Always keep that in mind and you would be fine!
In the next post, we would talk about Your Biggest Mistakes in Trading. Do not commit these blunders while they are common.
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