That Sacred Part Of You
"Hold sacred your capacity for understanding. For in it is all, that our ruling principle won't allow anything to enter that is either inconsistent with nature or with the constitution of a logical creature. It's what demands due diligence, care for others, and obedience to God."
— Marcus Aurelius, Meditations
Another interesting meditation today and things that we take for granted.
Remember that not everyone can stay disciplined and focused and patient, so what we do as traders isn't the easiest thing to do for a lot of people. People coming from a betting background and having a go at trading, can find it very difficult as they have been used to placing their bets and letting them run. If they win, they win and if they lose, they lose. By managing their stakes they need a certain percentage of wins to remain profitable long term. Trading is different because we are managing our trades in play and taking our targeted profit or cutting short a potential losing trade at a manageable level to stay profitable long term. Somebody from a gambling background will find it tough to willingly accept a loss and be more tempted to let trades run. This is where you can quickly blow a bank!
So I believe that if we can be successful at trading, we are blessed with the ability to be patient to wait for the right opportunities that fully meet the rules/criteria for our strategies. We are also disciplined enough to be able to avoid jumping on a trade that doesn't fully meet our rules/criteria and bail in a heartbeat if we are on a trade that is going against us. Having the correct trading mindset to do all these things is something that some will need to work on more than others. Some will tell you that the hardest part is cutting a loss short at a manageable level, especially if just after you have pulled the trigger, the trade starts to move back in your favour! This can be frustrating and annoying but we have to look at the bigger picture, because if you stay in a trade and it doesn't turn back in your favour, you are dealing with a much bigger unmanageable loss!
So stick to the rules/criteria for your strategies and your rules on taking a controlled red when the occasion arises. Be patient and stay focused with the correct trading mindset. This is "that sacred part of you" that you can use to your advantage to stay profitable long term as a trader.