No Time For Theories, Just Results
"When the problem arose for us whether habit or theory was better for getting virtue — if by theory is meant what teaches us correct conduct, and by habit we mean being accustomed to act according to this theory — Musonius thought habit to be more effective."
— Musonius Rufus, Lectures
When we compare today's meditation to trading, we find that we also have to deal with situations that are right in front of us, in each trade that we execute.
We are basing our trades on the historical stats/data that we have available to us and we will only find out if we are correct, once we enter a trade and see how it pans out. By using the stats/data, we will generally be right many more times than when it goes wrong of course. The key to trading successfully is that if a trade is going wrong, we exit without hesitation, in a heartbeat, before that trade becomes unmanageable and the potential loss, becomes a threat to our trading bank.
As long as we manage every trade fully to completion, the regular profits from our trades that go as planned, will far outweigh the occasional trade that is going wrong; as long as we cut short those potential losing trades early enough!
By practising this regularly day in day out, we will become more disciplined and consistent in doing the right thing. This in turn breeds confidence to be able to become consistently profitable over a period of time and our results will reflect this.
We must work on our discipline and mindset and force ourselves to cut short losing trades BEFORE they become unmanageable, because we need to be able to live to fight our next battle!
So trust the stats/data that you have available and stick to the rules/criteria for your strategies.
There is no time for theories on what might happen during a trade and we have to expect the unexpected! Once a trade goes live, we have to react to what we are seeing and not what we hope or expect to happen. Don't be caught on the back foot; be ready to deal with whatever the market throws at you.
As the title of today's meditation says; "No time for theories, just results"