The Start-Up Of You
"But what does Socrates say? 'Just as one person delights in improving his farm, and another his horse, so I delight in attending to my own improvement day by day.'"
— Epictetus, Discourses
Today's meditation is definitely something to think about, because when you start trading seriously and treat it as a business, this can also be "the start-up of you."
As traders we are also just as invested in building ourselves, meaning that as we grow, so will our business. Put quite simply; if we don't build ourselves, we are not going to grow as traders and build our trading bank.
We learn the art of being patient and being disciplined enough to leave trades alone, that don't meet the rules/criteria for our strategies. We learn to control any losses in a way that protects our bank.
As with any business you can't run it blind; you have to do your research and have a plan to stick to rigidly. This is where your strategies that give you an edge, come in to play.
Your trading psychology and mindset is the manager of your business; you can't let fear, greed, or ego, lead to an unprofitable error, by breaking your rules.
Losing trades are the cost of doing business. They are your shrinkage. Your exits and controlled reds are your loss prevention department.
Your business must have insurance to manage risk. Exit strategies, including hedging before big reds appear, are your insurance against big losses. Cut your losses early enough to protect your business.
Your trading capital is your business. Lose all your money and you will lose your ability to operate and you are out of business!
The more you practice, the better you will become and you will grow in confidence and be consistent in your actions; making the right decisions and therefore ensuring long term profitability.
So if you are going to start trading seriously, this should be "the start-up of you" and your trading business.