Dao of Trading

"You should exercise unrelenting discipline over your thought patterns. Cultivate only productive attitudes....You are the product of everything you put into your body and mind."

I Ching
 
I Ching, how did he mean this? And who was he directing this statement towards? Its a general and obvious statement, to say the least (not to be arguementitive). O.K., so most level headed people will be able to grasp what he is saying and try to excercise this statement, but an exercise is all it will ever be to the most. Most of us reflect on our actions and descicions minute by minute, day by day, month by month and so on, but natural ability rules the day. Any thoughts, RB. P.S. We can change, but the question is, for how long?
 
Self conscience? Physics, Chemistry then Biology! The Universe created (within Humans at least) its own conscience, so maybe its 'invention' has not quite matured to plan yet or come to fruition? Maybe one day inteligent life will control the Universe or will 'time' run out. Do we all have to be different (good or bad) to give perspective?
 
Ah! that may be the point we can not all go beyond? In self realisation terms! We are what we are?
 
The following excerpt is from Yagyu's sword of Mastery (Suzuki, Zen and Japanese Culture).

I have changed the word Swordsman for Trader.

However well a man may be trained in the art, the trader can never be the master of his technical knowledge unless all his psychic hindrances are removed and he can keep his mind in the state of emptiness, even purged of whatever technique he has obtained. The entire body together with the four limbs will then be capable of displaying for the first time and to its full extent the art acquired by the training of several years. They will move as if automatically, with no conscious effort on the part of the trader himself. His activities will be a perfect model of trading. All the training is there but the mind is utterly unconscious of it.


When actions are directly related to the problem of life and death, they must be given up so that they will not interfere with the fluidity of mentation and the lightning rapidity of action. The man must turn himself into a puppet in the hands of the unconscious. The unconscious and instinctive must supersede the conscious.
 
Simon, i have written posts with meaning to subconscious in the past. Since then, i have had a change of heart. Trading is not a 'subconcious' 'business'! It is a very conscious business. By subconscious i probably meant 'reflex thought' or just 'personal opinion'. Both can be deliberated on by the individual, but the true you will always shine through. Rudie.
 
As for the general jist of the post, i would say it was just trying to say that practice makes perfect, or there abouts, but in a much more elequant way? Dunno really, its just a matter of personal perception. Anythoughts, what do you think?
 
TAO and TAOISM by Koppel

According to Chinese tradition the Tao originated with Lao-Tzu, who was born in 604 BC. He is an enigmatic figure who is frequently pictured as being a solitary recluse, down-to-earth, a genial man with a ferocious sense of humour and joyousness. His name itself, Lau-Tzu, can be translated as "old boy," "old fellow," or the "grand master." He never preached or organised any religion and did not seek fortune or fame.

According to Huston Smith, author of The World's Religion, Lau-Tzu, saddened by people's disinclination to cultivate the natural goodness with which he believed they were endowed, sought personal solititude. As legend has it, he climbed on a water buffalo and rode westward to what is present day Tibet. At the Hanako Pass, a gatekeeper tried to persuade the strange-looking itinerant to turn back. Failing this, he asked Lau-Tzu to leave a record of his beliefs for the civilisation he was abandoning. Lau-Tzu retired for three days and returned with a slim volume of 5,000 characters titled Tao Te Ching (The Way and its Power).

The Tao teaches that each of us possesses limitless power and potential that we can realize when we align ourselves with the natural flow of energy and events. The Tao promotes personal growth and improvement and advises us to respond to life's challenges like water yielding, by not forcing unnatural energies, and by following the natural path of least resistance.
 
As for personal harmony, forget it! The best you will ever achieve comes as death reaches you, because once your life has ended, you cannot better yourself. Evolutionary principles say you will never be totally happy with yourself?
 
Post 91, we may, but i would say that this is such a forceful concept for an individual to realise that it doesn't bear thinking about these days, especially. 'We all have our 'rights''. Self indulgence is a far cry from self awareness. Scholars, wether present day or from the past, visualise harmony and perfection. It's hopeful, but, probably unrealistic. Harmony is to static, it doesn't create and it doesn't give room. As you and i and everybody else is on the planet RIGHT NOW, is ACTUAL HARMONY. Thats just the way things are. Hope this makes sense.
 
Sorry about the number of posts, but just to clarrify things. Actual harmony is how things are, theoretical harmony is how we would like things to be! Rudie.
 
I used to be a discretionary trader using technical setups and I do think there is some unconscious business I have to manage. There are times when past experience and memories and what's going on at the moment trigger some images and feeling that make you impulsive to put a trade on:
1) You have to catch yourself when it occurs. Maybe writing down the feelings can help. It is essential to short-circuit the impulse and go into step (2)
2) You have to figure out if the setup is part of your trading plan because if it is not, you can't trade it and I'll tell you why you can't. Every technical setup works sometimes and not others. The ONLY way you can fulfill the probabilistic potential of the setup is by taking the SAME setup MANY MANY times consistently. Taking it just ONE time occasionally is gambling (the outcome is a function of luck).
But if you are some macro-trader not basing solely on technical inputs, then that is beyond my experience. :?:
 
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I understand what you are saying, completely. Marty, what you are trying to explain (i think), is the whole trading experience. Traders, successful traders, evaluate and re-evaluate. It's an ever changing conumdrum (if you like). Its up to you to mentally percieve patterns, not somebody else. Not that you do (hopefully). Good trading, Rudie!
 
Chapter 7. Enduring

"Heaven is eternal, and the earth is very old.
They can be eternal and long lasting,
because they do not exist for themselves,
and for this reason can long endure.

Therefore the wise put themselves last,
but find themselves foremost.
They are indifferent to themselves,
and yet they always remain.
Is it not because they do not live for themselves
that they find themselves fulfilled?"

Heaven and earth are long lasting because they have no point of fixation and being same everywhere. There is no independent arising therefore there is no exhaustion.
By not fixating upon the "self", there is no self to be exhausted. Since the wise do not live selfishly, they have no wish unfulfilled.

Do not over-invest our energy to fixate upon the individuality of each trade sequence. There is no coming and going... no winning and losing... being overestimated.

Keep things in longer term perspective... Knowing consistency comes from taking the same setup same way over time assuming the setup indeed has an edge. Losing is part of winning. Planning and visualizing ahead of time help being emotionally prepared to welcome all possible outcomes.
 
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Gil Blake interviewed by Jack Schwager in "The New Market Wizards":

"My approach is to confront losses even before they materialize. I rehearse the process of losing. Whenever I take a position, I like to imagine what it would be like under the worst-case scenario. In doing so, I minimize the confusion if that situation actually develops. In my view, losses are a very important part of trading. When a loss happens, I believe in embracing it."
 
martyschwartz said:
Gil Blake interviewed by Jack Schwager in "The New Market Wizards":

"My approach is to confront losses even before they materialize. I rehearse the process of losing. Whenever I take a position, I like to imagine what it would be like under the worst-case scenario. In doing so, I minimize the confusion if that situation actually develops. In my view, losses are a very important part of trading. When a loss happens, I believe in embracing it."
Click to expand...
Ahh you assume a loss before it appears.... but in the words of Benny Hill, when you assume, you make an (ass) out of (u) and (me)
 
Swang said:
Ahh you assume a loss before it appears.... but in the words of Benny Hill, when you assume, you make an (ass) out of (u) and (me)
Click to expand...

I am not gonna be a brighter ass assuming otherwise :(
When we failed not to fixate, maybe we can assume a loss as a real possibility and manage the expectation according to our trading plans?

"The way I trade is: Live by the sword, die by the sword." -- Tom Baldwin
 
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