Friday, June 12, 2009

A New Direction has been chosen



Trading has become a new passion-obsession (they are interchangeable, right?). It is a place where the energy ebbs and flows in the market. Where a buyer needs to find a seller, and vice versa. Yes. It is that simple. No buyer and/or no seller makes no market. The bonus - these learnings are more broadly applicable - like yesterday mornings post. In trading I have to learn to reverse certain behaviours, those learned to protect oneself from risk as I proceed through life. But this "change" in application of behaviours is ONLY limited to the trading room. You still have to spend the rest of your life trying to live with manageable risk. In the room, you are 1000% focused on the market. Nothing else comes in. You're in the zone. With your background knowledge. With your familiarity with market action. You seek to manage the risk, by building your edge - whatever that might be. To some it is layers of indicators. To others is news and sentiment driven. To others its just about momentum and price action. And to even others, some other driver or combination thereof. The reality is you use what makes sense to you. You use what gives you the confidence to continue to make forward progress. And do not forget, there is no certainty. All outcomes have a probability. You seek and execute entries into and exits from the market, precisely in the manner you wish. And it is just that. Only your decision, your choice. The market presents the opportunities and they are endless in the truest sense of the word. Your edge is telling you .... something. You choose this. You are in the middle of executing your decision. You will be right AND you will be wrong. It is all about probabilities. Emotion has no place here. Fear cannot reside. You cannot hesitate. you cannot second guess. You execute according to plan, and you move on. As my trading room moderator said: "In a House of Gratitude, there is No Place for Fear to Hide". I love that.

And there is an underlying awareness that must also exist. Choice and the ability to choose. In whatever. Is always simple. Not necessarily easy. But not necessarily difficult. The power of polar opposites - the less effort, the grander the outcome. A choice is simply, the act of choosing. Anything and everything we do is a choice, based on information at the time the choice is made. As in trading, you will be wrong. guaranteed. And then I hear my dad's words: "as long as your mistakes do not kill you or anyone else, as long as they don't end you up in jail, tray not to make the same one too often". And as with Dr. Brett's guidance in yesterday's post, underlying choice is values. You make a choice according to your values. Alignment of choices and values makes for a snowball of creative energy. And vice versa.

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