Think Before You Act
"For to be wise is only one thing — to fix our attention on our intelligence, which guides all things everywhere."
— H Eraclitus, Quoted In Diogenes Laertius, Lives of the Eminent Philosophers
Today's meditation is short and sweet and right on cue when it comes to trading!
Have you ever asked yourself "Why did I jump on that trade?" "How could I have been so stupid?" "What was I thinking?"
This has happened to me on numerous occasions when I set out on my trading journey and I'm sure it has a resonance with every one of you, who reads this today! Why?... Because we are all human and at times we will do things without thinking. It is imperative that we regularly and consistently get into the right habits as traders and our mind has to be in charge; not our emotions!
This is why we need to be "in the zone" and have the correct mindset for trading; staying patient and disciplined 100% of the time.
If we fix our attention to our strategies and the rules/criteria that we need to stick to, we will avoid trading with emotion and we will also know that every trade that we enter, will be because it met our rules/criteria 100%.
We can then look back when we analyse our trading for the day and we will see that we stuck to the plan perfectly.
As long as we cut short any trades that are looking like going against us (we won't be successful with every trade), we will be right many more times than we are wrong. This is because of the stats/data that we have at our disposal and means that the odd controlled red will not affect our profitability in the long term.
This is why as traders, we need to "think before we act."