Accepting What Is
"Don't seek for everything to happen as you wish it would, but rather wish that everything happens as it actually will—then your life will flow well."
—EPICTETUS, ENCHIRIDION, 8
Today's meditation is a timely reminder that not everything will go our way and at times, we must accept what is.
This also applies to trading too of course and that is why we are ready to react to what we are seeing during a trade and making sure that we control our losses, when trades are going against us. This keeps us in the game and protects our trading bank.
By not accepting what is clearly happening during a trade, we can end up exposed and putting our bank at an unnecessary risk!
Then we go through the pain and anger of wondering why we didn't stick to our rules, instead of letting the trade run!
We must be disciplined to be able to pull the trigger and willingly take that controlled loss at our pre-agreed exit point, before it becomes unmanageable and it leaves us with potentially disastrous consequences!
We need to avoid the pain and anger, which can lead to revenge trading, breaking our rules and going on full tilt!
If you do fail to get out of a trade and end up taking a big loss, it is best to shut down the pc and take a break. Don't let yourself continue and try to get back what you have just lost, trading recklessly and breaking your rules, in a desperate attempt to get your money back! You will generally only dig yourself a bigger hole to try and get out of!
Take a walk, clear your head and be determined that the very next time this situation arises, you will stick to your rules and exit at your pre-agreed exit point. You should automatically know your exit point as soon as you enter a trade. This is something you need to practice and you must become almost robotic for the time that you are exposed in a trade, so that you can fully manage it to completion.
Stay patient, keep your discipline and stick to your rules 100% of the time; this means taking a pre-agreed controlled loss from time to time, because you will not be profitable in every trade. This ensures that you are "accepting what is" and not ending up in the land of hope, praying that your trade will turn back in your favour! Don't leave it too late to cut short a losing trade; stick to your rules. With practice, practice and more practice, you can do it for sure!