In a recent blog post on the ancient philosophers at Barking Up the Wrong Tree an interesting idea for our trading was presented.
Really thinking about just how awful things can be often has the ironic effect of making you realize they’re not that bad.
From my interview with Oliver Burkeman, author of The Antidote: Happiness for People Who Can’t Stand Positive Thinking:
It’s what the Stoics call, “the premeditation”—that there’s actually a lot of peace of mind to be gained in thinking carefully and in detail and consciously about how badly things could go. In most situations you’re going to discover that your anxiety or your fears about those situations were exaggerated.
Often I can be heard on the desk saying, like the ancient Stoics apparently, to our new traders when they are sweating a position, “What’s the worst thing that can happen?” My purpose is for them to just trade the trade and not get emotionally invested in the results. I also use it as a way to encourage traders to get bigger in their best positions. Try this with your trading and see if it brings a sense of calm (to trade in the zone, as we say in trading).
You can be better tomorrow than you are today!
Mike Bellafiore
Related blog posts:
Some Help for the Impatient Trader
Add a Dose of Patience to Your Trading
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