A Little Knowledge Is Dangerous
"Every great power is dangerous for the beginner. You must therefore wield them as you are able, but in harmony with nature."
— Epictetus, Discourses
Exactly the same can be said when we compare today's meditation to trading!
It states in the meditation and I quote; "Early promise can lead to overconfidence and create bad habits."
When we do well with a good run of winning trades, taking our targeted profits, we can easily feel invincible and that we've cracked this trading lark and it's so easy! This can lead to overconfidence and complacency and you can soon develop a cockiness and arrogance when you are trading. You are relaxing and expecting trades to go your way and then, when you are off your guard BANG you get hit with a big loss! This brings you back down to earth with a bump!
Most traders will tell you that it has happened to them on more than one occasion, if they are being truthful and I certainly learnt this lesson myself the hard way, on a number of occasions, before the penny dropped!
Regardless of how well your trading is going, it is vital to stay focused and "in the zone" and to always expect the unexpected and be ready to cut short potential losing trades at your pre-agreed exit point, in a heartbeat! This enables you to protect your bank and stay in the game!
"A little knowledge is dangerous" if you don't stick to the rules/criteria for your strategies! Don't bend them or break them, because this is what gives you your trading edge!
Stay patient, disciplined and stick to the plan 100% of the time. Turn up every day that you can and repetitively practice executing your strategies, over and over again.
Like the last line of today's meditation says; "Don't get carried away. Take it slow. Train with humility."
This will give you a fighting chance of long term successful and profitable trading. You can do it!