The story of the monks is a great example of how traders can get stuck in negative thinking.
Just like the younger monk couldn’t stop thinking about the woman after the older monk had already moved on, traders often hold onto the negative thoughts after a triggering event like missing a trade or losing a trade
Instead of letting go and focusing on the next opportunity, they replay the mistake over and over in their minds, which only adds more stress and proceeds to negatively impacts their decision-making for the next trade.
Instead learn how to be more like the old monk...
1) Detachment from Outcomes: Monks practice non-attachment, In trading, this means not letting wins or losses affect your decisions. You make choices based on your plan, not your feelings, which keeps you from jumping in moves out of fear or excitement.
2) Staying in the Now: Zen is all about being in the moment. For traders, this means staying present and not letting their minds begin to drift to the past or worrying about what will happen in the future. When you stay focused in the now you will trade 10x better.
3) Keep It Simple: Monks live simply, and traders can benefit from this too. Too many rules or indicators can confuse you. A straightforward trading strategy usually works best. Focus on removing not adding.
