Trading Guidelines

Trading well for me is about my own personal pursuit of excellence. I have no competitor, I do not trade “against” anyone or anything else, and I have nothing to prove to anyone but myself that I am capable. I liken executing a great trade to performing a great athletic feat, like a backflip on the balance beam, or a triple flip on the high bars. For me trading well gives me great intellectual satisfaction and discipline in my life. That is why I continue to do it day after day.

My trading guidelines are as follows:

  1. Nonresistance. A trader must be the bamboo tree that bends with the wind. I am the bird that rides the wind and the fish that swims with the current. I am in partnership with nature. I am at peace.
  2. Accommodation. I adapt to the demands that are put upon me. I train to become a better trader by gradually increasing the demands upon my capacities. I tolerate failure and learn. I climb my mountain with small steps.
  3. Balance. I do not trade too much or too little. I am not too aggressive or too passive. Balance implies that for every up cycle, there will naturally be a down cycle. Some days are high energy, and others are not. I become immune to impatience and frustration because I recognize that there is a natural law of balance in life.
  4. Natural order. There is a natural progressive development in my life, my trading capacities, and in nature. The seasons progress in proper sequence without haste. Just as a tree grows from a seed, I grow according to the natural order of the universe. I have humor about my general progress.
  5. Awareness. I become more and more aware of my errors so as to correct them until my performance becomes perfect. I am aware of my strengths that give me confidence, inspiration, motivation, and satisfaction. I am aware of my weaknesses that allows me to strengthen my foundation and consistently improve. I take responsibility for my errors and take steps to correct them.  I am patient with myself and free from self-criticism.
  6. Preparation. I prepare for my journey ahead. I build a solid foundation. I may take the longer path towards my goal only because I take the time to prepare my mind, my emotions, my body, and my techniques. I do not fear failure. Failure is part of the learning process. I am at peace with failure.
  7. Total attention. I am in the present moment when I trade. I give total attention to the trade I am in. I have full focus on the movements in the market. I have one-pointed attention. I free myself from internal distractions and problems while trading.
  8.  Relaxation. I am relaxed when I trade. If I feel fear, anger, anxiety, or sorrow while trading, I do not pretend that I do not feel the emotion and I do not overdramatize the emotion, but I translate my response to my emotions into positive energy and action.
  9. Physical Health. With mental clarity to light my path and emotional energy to furnish the fuel, my body becomes the vehicle to perform the perfect trade. I take care of my body by eating well, getting enough rest, and exercising. I develop strength of mind, body and spirit and suppleness in my movement in the markets. I develop sensitivity that enables me to learn more rapidly and with greater ease. I develop stamina to perform trades over an extended period of time.
  10. Focus. I place my focus on performing the highest-probability-trade setups while keeping an open mind.