Only Fools Rush In
"A good person is invincible, for they don't rush into contests in which they aren't the strongest. If you want their property, take it — take also their staff, profession, and body. But you will never compel what they set out for, nor trap them in what they would avoid. For the only contest the good person enters is that of their own reasoned choice. How can such a person not be invincible?"
— Epictetus, Discourses
Another great meditation today that also fits in perfectly for the trading mindset!
Choosing our battles in trading is a prime example here. We follow the rules/criteria for our strategies, which means that we choose our battles carefully. If the full rules criteria are not met, we leave that trade alone and look at the next opportunity and we do this until we find something that is 100% perfect. This is what gives us our edge and we are much more likely to be right, many more times than we are occasionally wrong, because of the historical stats/data that we have at our disposal. As long as we manage each and every trade, by taking our targeted profit or cutting short the odd losing trade at our pre-agreed exit point, we will ensure that we stay profitable long term.
The last paragraph of today's meditation is so very true and I quote; "Some people think that 'choosing your battles' is weak or calculating. How could reducing the amount of times we fail, be weak? How is that a bad thing? As the saying goes, discretion is the better part of valour. The stoics call it reasoned choice. That means be reasonable! Think hard before choosing and make yourself unbeatable."
In summary be patient, do your research before considering a trade and make sure it fully meets the rules/criteria for your strategies. Keep your discipline and take your time, because there will be plenty of opportunities to come. As the title of today's meditation reminds us; "Only fools rush in."