This Article is About
consistent profits
successful entrepreneur
collective consciousness
calm mind
mental challenge
professional trader
human behaviour
right tools
short cuts
day trading
What Buddhism Can Teach You About Trading And Investing
Join 1000's of Authors at StreetArticles Today!

What Buddhism Can Teach You About Trading And Investing

When it comes to trading and investing, making consistent profits in the markets most intra day traders and many longer term traders are having to face up to the fact that their trading psychology is not as great as they had hoped.

It is a well known fact that many a successful entrepreneur, or professional turned trader find their new chosen profession unexpectedly challenging. Particularly intra day trading brings it out in one. I only know too well from my early days of trading EUR/USD intra day that I came across many a mental challenge. I uncovered hang ups I did not know I had which eventually brought me closer to my real trading nature and improved the relationship I have with myself in a way I could not have envisaged.

This of course is many years down the line and most aspiring traders never make it that far down the line, since they ignore the psychology of trading and instead focus on finding systems that would make them money. This is a great shame, because with the right tools and a little coaching many of these people who end up giving up prematurely might make good traders.

Buddhism talks a lot about letting go of our expectations. Expectations from trading tend to be high, far too high in fact. They are born out of a false understanding of what is required to be a good trader or investor. Trading and investing are about patience first and foremost. It is about detachment from what the collective consciousness is doing and positioning yourself in anticipation of a move. The anticipation is not an expectation of profits, rather it is an understanding of human behaviour. Every seasoned professional trader knows this.

The calm mind sees all. A calm mind is developed by going beyond one's limitations and beyond the past without execrations of the future. Most people find this concept very hard to grasp, yet grasping it is a necessity for consistent trading performance.

There are no short cuts. Either you let go of the past, your ideas and past experiences which form your future expectations or you will sooner or later pay the price in the markets, normally with massive losses.

Learning about the psychology of trading and learning as much about your own trading personality as you can is vital, because this enables you to select and stick with the trading style that is suited to your trading psychology. It is the very first step. Only then should new traders begin to look at trading systems.

Unless traders and investors are willing to look at their emotional baggage, let's face it, we all have some, and clear it, they will be trading out their suppressed feelings and emotions without their knowledge. I wonder, why should we insist on making trading harder for ourselves than it is, It must be the ego wanting centre stage yet again.

Street Talk

Thank you Penny. I am glad you enjoyed the article.:)

  about 1 decade ago

Well written article Mercedes, thanks for the information.

  about 1 decade ago
You May Also Like
Your Trading Emotions, Foe Or Friend?
Many a myth exists in trading community blogs and articles on trading psychology regarding our trading emotions. By and large the opinions of traders and trading coaches are reflecting long established paradigms which are the result of a predominantly macho oriented world. These old paradigms are becoming outdated though as…
By:  in  Investing  >  Day Trading   Jul 19, 2013  
  Likes: 2

Forex Automatic Trading - Are Forex Robot Traders Right For You?
If you've been considering getting into Forex trading for some time now, then it's very likely that you would have head about Forex automatic trading with Forex robot traders. Forex robot traders are programs that plug into a trading platform such as Metatrader 4 and trade automatically for you. Forex…
By: Thad B. in  Finance  >  Currency Trading   Feb 28, 2011  
  Likes: 0

How to Decide What Business to Start
“I want to start a business, but I don’t know what. Do you have an advice?” There is a big controversy when advising people willing to start a business on how to select an idea. Some people say that passion should definitely be turned into a business while others think…
By: Ancuta Neagu in  Business  >  Entrepreneurialism   Mar 13, 2012  
  Likes: 2

How Can A Good Employee Become A Successful Entrepreneur?
For a person who was taught and trained to be an employee, the idea of starting her own business is intimidating if not scaring. Being on their own may look to many people as assuming a too high risk. Being an employee, it is enough to show up daily in…
By: Ancuta Neagu in  Business  >  Entrepreneurialism   Mar 19, 2012  
  Likes: 2

Successful Entrepreneur – The Story Of A Self Made Man
Johan Fouchè, the Chief Executive Officer of MBT petroleum, a friend and family member by betrothal (now divorced) a successful entrepreneur. I have known him for many years, had short visits with him and recently became reacquainted. I spent an hour and a half with him, listening to his success…
By: Rob Ainslie in  Business  >  Solo Professionals   Feb 20, 2012  
  Likes: 1

Why You Will Always Work for the Man
You may soon realise what I learned long ago... it is not easy to escape the work force. It is one of the hardest things you will ever do. The economy has you where it wants you. The tax man has you where he needs you. There is absolutely no…
By: Greg Bilston in  Business  >  Entrepreneurialism   May 11, 2012  
  Likes: 3

The Best Internet Marketing University
Wealthy Affiliate is by far the best internet marketing training available. It is an internet marketing school that specializes in internet marketing. It's all they teach. In fact, I'm a member and have been since 2009. They give you everything you need to become a successful entrepreneur. There is a…
By: angie smith in  Internet and Businesses Online  >  Internet Marketing   Dec 15, 2012  
  Likes: 3

The Best Internet Marketing School: An Honest Review
The information I'm about to reveal to you is worth gold. When my children were born, I was on a mission to make as much money as I could so my kids wouldn't lack anything. I've always enjoyed learning and internet marketing seemed to suit me. I came across this…
By: angie smith in  Internet and Businesses Online  >  Internet Marketing   Nov 30, 2012  
  Likes: 7

Wealthy Affiliate: An Internet Marketing University
Before I begin to tell you about this awesome opportunity, let me just say that I tried internet marketing on my own for two years with no luck. I finally made my first dollar after joining Wealthy Affilite. Wealthy Affiliate is an internet marketing university and it is a gold…
By: angie smith in  Business   Dec 01, 2012  
  Likes: 6

Joining Wealthy Affiliate Is Not A Scam?
Let me just say that I didn't make my first dollor online until I joined Wealthy Affiliate. It was the single most important step that I took on my journey to financial freedom. Wealthy Affiliate University is not a scam, it is a very legitimate way to learn about a…
By: angie smith in  Reference and Education  >  Online Education   Nov 30, 2012  
  Likes: 5

The Most Important Thing An Entrepreneur Should Learn Before Getting Into Business
Imagine a labyrinth. When you are inside, it is difficult to find the exit. But if you have the possibility to take a look from above, it will be easy for you to see which the right direction is. Becoming capable to see the big picture is the secret of…
By: Ancuta Neagu in  Business  >  Entrepreneurialism   Mar 15, 2012  
  Likes: 0

The Law Of Attraction – Persistence – The Eighth Step To Success
There is no door to success without persistence (my own quote).  Instant success is very rare, and therefore, anyone having reached success had most likely had to show persistence to attain it. If Thomas Edison had not shown persistence, most of his inventions would have never came to be.  There…
By: Sylviane Nuccio in  Self Improvement  >  Achievement   Sep 16, 2011  
  Likes: 1

Online Network Marketing In The Philippines – Accelerated Success
In todays’ world of business, there is a new term called “accelerated success” because of the internet. If you haven’t heard of this yet you might have not heard the successes of people who are generating 7 figure income every month by working from home. This is exactly what’s happening…
By: Michael Galaraga in  Home Based Business  >  Network Marketing   Nov 23, 2012  
  Likes: 0

How to Set Up An Online Business 3
So what’s this then? This is the third in a three part series of articles addressing the subject of ‘Setting up an Online Business”. The first part begins with a reality check and the importance of having a Business Plan. The second part deals with how to use the Business…
By: Jerry in  Internet and Businesses Online  >  Ecommerce   Mar 01, 2011  
  Likes: 1

Are Your Fears Stopping Your Abundance?
I had a call from a long standing client the other day. The client is a very successful business woman who works internationally, but has immense fear of financial loss.She lives in Europe and of course for many Europeans the fear of the unstable European zone brings out many fear…
  Likes: 0

Article Views: 2997    Report this Article