Shoes off in the trading room please!

Better than any stock tip you will ever get! Don't drag baggage into the house or your trading.

Mar 01, 2024

The construct of right and wrong.

Blame and boasting.

They must be eradicated from your mind if you are to be a successful trader and speculator.

Not easy to do but imperative.

Here is an anecdotal lesson.

The Tree of Wisdom Outside my Window

I have shared this observation with many family members and friends who were going through something or a period of imbalance.

When I too was going through the depths of Covid in NYC lockdowns, I was becoming stir crazy! How many more zoom/video calls do I need to be on in one day, every day? Nothing was open. I was also caring for my father in law who contracted Multiple myeloma, which is cancer in the blood for those that don’t know. So with chemo treatment lowering his ability to fight infections and viruses and his COPD, catching covid or even the flu could mean his death.

During this time I really picked up the pace on my yoga and meditation practice and one day it was like the tree outside was speaking to me (no I do not take drugs).

I realized this tree was probably seeded or planted between 1860s to early 1900s in Manhattan. It has stood there steadfast though possibly the civil war, roaring 20s, The great Depression, both World Wars, Sep 11, as well as all the good times too! Decades, possibly century plus.

In that realization I also discovered another nugget of truth that has helped me in life and in trading. This tree has never blamed anything. The sun, the rain, the dog piss, the noise, all of it. These facets of NYC were not happening TO the tree. They were simply happening.

And in your life, your relationships, your trading, your business, things are not happening TO you. Sure in some cases if someone is robbing you, you are having indigestion, or you are sick and ill, those are truly happening to you.

But in most cases, the things we get hung up over in life are simply happening around us. Happening even if we were not alive! Yet we perceive them to be happening to us.

A comparison I would like you to make in the stock market is to imagine trading stocks were akin to trading facets of the weather.

Rain = loss

Sunshine = profit

Were you right or wrong? Who cares? You had a thesis and implemented a trade with if-then scenarios. You do not control the weather, no more than can you control the madness of market participants.

You can pause and reflect, review, analyze and even feel disappointment and happiness from the results. You are only a human trading against computer algos trying to beat you.

Feeling wrong (shame)

Gives birth to lack of confidence. Are goals easier or harder to accomplish in life without confidence? Why encourage lack of confidence and create a mountain for yourself?

Feeling right (boastful and ego)

If you succeed, being overly boastful, taking glory or feeling right, minimizes the perception of wins, maximizes the agony of defeat. Then analysis paralysis ensues.

The key is to be even in your confidence. Humble and prepared. Learn from both rain and sun.

Take only Small losses

Let winners run

Enjoy the sun

Enjoy the rain

They are both right

That’s how Rainbows are made!