This Article is About
consistent profits
successful entrepreneur
collective consciousness
calm mind
mental challenge
professional trader
human behaviour
right tools
short cuts
day trading
detachment
What Buddhism Can Teach You About Trading And Investing
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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.:)

Reply
  about 7 years ago

Well written article Mercedes, thanks for the information.

Reply
  about 7 years ago
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