Follow The Logos
"The person who follows reason in all things will have both leisure and a readiness to act — they are at once both cheerful and self-composed."
— Marcus Aurelius, Meditations
Today's meditation is very interesting and the helpful analogy to explain the logos, immediately made me compare it to trading the markets!
Here is that analogy from today's meditation; "We are like a dog leashed to a moving cart. The direction of the cart will determine where we go. Depending on the length of the leash, we also have a fair amount of room to explore and determine the pace, but ultimately what each of us must choose is whether we will go willingly or be painfully dragged. Which will it be? Cheerful acceptance? Or ignorant refusal? In the end they amount to the same."
So putting this in trading terms, when a trade is going just as we hoped/expected, we are moving in the right direction and we take our pre-event, targeted profit and move on to the next opportunity, that fully meets the rules/criteria for our strategies.
When a trade is going against us, we willingly cut short that trade at our pre-agreed exit point, to protect and preserve our trading bank; instead of being painfully dragged into a situation where our loss becomes unmanageable and our trading bank comes under serious threat of being decimated! And this is all because of our ignorant or maybe even stubborn refusal to control our loss and move on, with bank intact!
If we can cheerfully and willingly allow ourselves to take an occasional controlled loss, instead of ignorantly refusing, then we will become consistent in our decision making and will be long term profitable.
Trust in the process and you must react to what you are seeing, with a neutral mindset, when things are going against you! Remember; you should know where you exit point will be, as soon as you are entering a trade, should you need to exit!
You've got this; you can do it for sure!