Tame Your Monkey Mind

Trading is not difficult but gaining the mental edge to be successful can be. This did not come naturally for me. I spend a lot of time reading about trading psychology. I don’t do anything in my trading that anyone else can’t do. I often wonder why it is that 95% of people fail at trading. One possible reason could be that people struggle to control their monkey mind. When I show my trading method to people, they can understand what I am showing them, but they find it very difficult to put it into practice. When I ask them why they placed a trade that was against my rules, and they lost money, they invariably start their answer with “I thought”. It takes time to control the monkey mind. I spend a lot of time on my mental aspect of trading. I found it very hard to meditate, but I can focus on my mental edge when I go on my daily walks. I focus on being successful. I try to imagine how good it feels to make a profitable trade. When I do well, I reward myself. I understand that trading is not about being right or wrong. I always say that trading is 95% mental. Try some basic mental exercises for yourself when you go for a walk. You can get better at it with practice. I am going to be talking about the mental aspects of trading that I have learned in coming posts.

Buddha came up with the term “kapicitta,” which refers to the monkey mind. While all of these monkeys are creating chaos in our minds, jumping from branch to branch, Buddha urged his disciples to develop “a mind like a forest deer”. Buddha noted that deer are especially gentle creatures who are able to remain aware and alert no matter what is going on. They can quiet anything that is distracting in the background and only focus on the here and now.

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