Importance Of Peace of Mind in Trading.
3C rule i apply in my trading to balance my mind in trading
Peace of mind is something that we all crave for. Same thing is very important in trading. We cannot achieve this state without putting effort. After all, peace of mind is not something that can be procured by spending money, making profit /Loss or by force. The mind needs to be balanced and in equilibrium before it can reach that state. For the mind to be balanced in trading or life, we have several 'dos' and 'don'ts' to follow. Given below are three 'don'ts' which go a long way to achieve that state. They are described as the three Cs.
Criticizing: The first C is criticizing: It is one of the most natural talents that we all have. As per human psychology we think about loss more than profit(for example : if we made 10000 inr in one day and second day we have loss 4000 inr. so as per normal human psychology we will concentrate on 4000 loss make not 6000 profit in net) Our minds seem to be tuned to find fault, negativity and spot blemishes. Many a times, we see problems where none exist. It is as if our minds have the uncanny knack of identifying a problem. At the same time, our tongues are eager to let others know of our 'superiority' in being able to articulate those problems. When we criticize thus, unnecessarily, we are unknowingly building resistance as well as enemies. These lead to unwarranted loss, anxiety , fear and greed Moreover, our minds which get clouded in negativity refuse to let us reach the state of equilibrium. which is very much required in trading.
how i balance my mind?
My that strict excel rule ( i have mentioned earlier on this thread ) where i don't put entry and exit point during running month. i just see either i was disciplined or not. helps me to reach peace of mind during whole trading month.
Complaining: The other C is similar to the first C and yet more damaging. Complaining is taking criticism to a higher level and almost results in condemning others. that's why when traders make loss. they try to blame others for like any expert, tip adviser etc. In trading we are the one who are responsible for our all action. The day one realize it and starts improving those wrong action, He will move to path of becoming successful trader.
How i get over it?
I firmly believe that i am the only one who is responsible for my capital. No X Y Z is responsible for my capital. like for example long back i had 3 SLs just because of wrong data not because of my system (Hitting SLs part of system but that SLs were because of wrong data). So i accepted that it's my mistake that i trusting illegal data vendors. Straight way i subscribed to legal data vendor. Never complain, Accept the fault and concentrate on improvement.
Comparing: Another C which we seem to be unable to avoid is the comparison bug. It is almost like a virus which is in the air. Many of us are comparing all the time - ourselves with those around us. It could be about anything - wenkgh, friends, physique, job, dogs, appliances etc. It gives us momentary pleasure when we see others in a worse situation than us and also give us sleepless nights when we see others enjoying more than us. Comparison is a never ending maze where people get lost and unable to recover their bearings. It is a method of inventing joy / sorrow out of nothing. First there are traders who doesn't know psychology of trading, but there are traders also who know all these aspects but just because other trader. is making 30% per month they forget themselves than starts copying him and end up in loss.
I was having same habit. that was the reason i was not able to be discipline. I made system but was not able to trade them . because i was comparing myself to other.
later i understand
There is deference between batting style of SACHIN,SEHWAG,RAHUL. but all are legend in field of cricket. So when i used to compare my self with other i remember my this line. stops straight away and concentrate on something else.
These three C's are best avoided and conscious efforts taken to prevent ourselves from getting entrapped here. It would be a good idea to get rid of them as soon as possible if you want to be successful in trading. You can above mentioned tricks or you can find new tricks which helps you to get out of 3Cs. But getting out is very Important no matter how. Over time, we might become habituated to completely avoid them and progress towards the much coveted state of peace in our minds in trading.