My Trading Tao Te Ching, part 3.

April 7, 2019

If you overesteem great men,

people become powerless.

If you overvalue possessions,

people begin to steal.


The Master leads

by emptying people’s minds

and filling their cores,

by weakening their ambition

and toughening their resolve.

He helps people lose everything

they know, everything they desire,

and creates confusion

in those who think that they know.


Practice not-doing, 

and everything will fall into place.


—From “Tao Te Ching,” by Stephen Mitchell

For me, proper trading means NOT FORCING.

When I place too much emphasis on existing winning trades or strategies, I risk becoming “wedded” to them. They somehow work into my ego and I self identify with them, which then works to blind me against what ordinarily would be obvious early warning signs to alert me to change course. I become powerless to this force and essentially steal from my future earnings potential via other avenues.

The Market (Master) absolutely is in constant effort to chisel away at my ambition while strengthening my resolve. And I should let it. I should not step into the market with my own demands on what it owes me. Instead, my focus should be on finding the opportunities and peeling off whatever I can whenever and wherever the opportunity presents itself. Sometimes the bounty will be massive, others meager. But it is not for me to choose, only to accept.

Stop forcing my needs upon the market, and everything will fall into place.