Practical Vedanta and Trading – One Important Thing to do for Consistency
Hello traders, here Thiru Nagappan founder of Master the Markets, Elite Traders Conference, and Traders Open Day.
Today on this video on practical Vedanta & trading, we are going to talk about one important thing that you have to do for consistency. What is that one important thing? And it starts with the letters “d”, “e”. Are you having a guess? Think about it, what is that one thing that we need? We want to be; for example, we want to be consistent with our trades and we have all our rules quantified but even then, we stop being consistent. We get bottled down by drawdowns that we get, by the losses that we get, impatience comes in. Your mind starts to play out, and you start to think. Am I really going to get the profitable trades that are going tot override the losses? Are my back-testing results going to match our back-testing results? All that chatter starts to come in and you stop being consistent, because you lose the drive. So, what is that one important word that you need for consistency? And the word is “detachment”. You need to detach from the results. Now; the most reasonable question then is, Thiru how do we detach from these results? There are three things that we can do to detach from results. First, it is what we call the “law of numbers”. This is critical for detachment from your results. What do I mean by “law of numbers”? It states that on that particular trade, or on those two trades that you got a loss, this is not what makes up the overall result. It is not a single trade that makes up the result, is a multitude of trades that makes up the overall results. That is what we mean by “law of numbers”. For example; if you think about a coin that you flip three times, and you get heads three times, that does not fulfil the 50/50 probability. You would need “law of numbers” to achieve the 50/50 probability. Same thing in your strategy that you have doubled up, you can only get your final results once is has gone through the “law of numbers”. That information alone will help you detach from the result of that single trade or even two or three trades that have lost. Secondly, in the philosophy of Vedanta and just practicality of life. You must first understand that happiness is not in the outside. It is in the inside. If you understand that, then what naturally will happen is that you will realize that happiness is an estate of the mind. When you understand that happiness is an estate of the mind, the mind naturally comes into the estate of now. In presence of the now moment. How does that help you as a trader? When the mind is present in the now, we stop thinking about the trades from yesterday or the trade that is going to happen tomorrow. Then, the mind is zoned in the process of execution which helps us in consistency. Thirdly, what is important coming from the second point, is that if happiness is on the outside and not the inside. How do we maintain the mind in the now moment? According to the philosophy of Vedanta and making it practical towards trading is only through spending some time in silence and sitting where you observe your thoughts. Naturally, when you observe something like I observe this marker pen, what happens then is that I disassociate myself from it. Imagine now that this marker pen is a thought that is coming in and out of your mind, I observe this thought and naturally become disassociated from it. The thought dissolves, and I get into this natural estate of the presence of now. These are the three things that I wanted to mention. The detachment of the results keeps you in the now moment through the law of numbers and abiding in the self.
That is all from me today. Digest this information and apply it in your own trading. As we always say; stay disciplined, follow your trading plan, and keep Trading Like a Master.
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