Listening Accomplishes More Than Speaking
"To the youngster talking nonsense Zeno said, 'The reason why we have two ears and only one mouth is so we might listen more and talk less.'"
— Diogenes Laertius, Lives of Eminent Philosophers
Today's meditation is an interesting concept and it can be used as an example to compare wise traders.
Here are those simple reasons that we can compare.
First, wise traders manage their expectations and don't expect what isn't possible in the first place. They will either take their targeted profit, or if a trade is going against them, they will exit for a pre-agreed controlled loss.
Second, wise traders will always consider the best and worst case scenarios. The best? Taking their targeted profit. The worst? Failing to control a loss. They are aware that this can happen, but because they are managing every trade to completion, they are confident that the worst case scenario will be taking a pre-agreed controlled loss.
Third, wise traders act with a reverse clause. They know that things can and will go wrong on occasion and they learn from this rather than getting angry, upset and making knee-jerk reactions. Utilising their reverse clause means that they can start fresh and do it better next time!
By doing this when we trade, nothing should surprise us or happen contrary to our expectations.
I touched on the reverse clause in more detail on day one this month, if anybody wishes to go back and take a look.