Real Life
Trading Philosophy - Watch out for that big truck in your lane!If you are driving down the road and a truck is coming straight at you, in your lane, do you stay in that lane or swerve across to the empty lane where you are not supposed to be? The rules are clear, you are not supposed to be over there. The system says don’t do it, but reality is an 18-wheeler coming toward you in your lane. Do we follow all the rules of safe driving, or do we adapt to the situation at hand? Survival is a function of adaptation. Reality rules. On the road, in the markets.
The first rule of life is to survive; the second rule is that all rules can be broken if that supports the first rule. Take this as your trading philosophy.
Day trading follows the same rules we use for life. Successful trading is the art of using knowledge (systems) at the right time. This means when it is time to use the system or rule, you check for an oncoming 18-wheeler. That is what thinking is all about. We do need systems of living and systems for trading. But it is not mandatory that you follow all systems exactly all the time (just 99% of the time!). The reason is that systems do not adapt to any new bits of reality. That is what our mind is for, to observe, to record, to note changes, and then to develop an optimum use of the system.
simpletradingrules.c.../trading-philosophy/
Trading Philosophy - Watch out for that big truck in your lane!If you are driving down the road and a truck is coming straight at you, in your lane, do you stay in that lane or swerve across to the empty lane where you are not supposed to be? The rules are clear, you are not supposed to be over there. The system says don’t do it, but reality is an 18-wheeler coming toward you in your lane. Do we follow all the rules of safe driving, or do we adapt to the situation at hand? Survival is a function of adaptation. Reality rules. On the road, in the markets.
The first rule of life is to survive; the second rule is that all rules can be broken if that supports the first rule. Take this as your trading philosophy.
Day trading follows the same rules we use for life. Successful trading is the art of using knowledge (systems) at the right time. This means when it is time to use the system or rule, you check for an oncoming 18-wheeler. That is what thinking is all about. We do need systems of living and systems for trading. But it is not mandatory that you follow all systems exactly all the time (just 99% of the time!). The reason is that systems do not adapt to any new bits of reality. That is what our mind is for, to observe, to record, to note changes, and then to develop an optimum use of the system.
simpletradingrules.c.../trading-philosophy/
