Pratical Vedanta and Trading – How to Achieve Freedom
Hi everyone, and welcome to “Practical Vedanta and Trading”. Today, we are going to be talking on the topic of how to achieve freedom. Now, the first thing on this topic traders, when we talk about freedom and especially financial freedom is to “know thyself”.
In Vedanta, it says, that you first have to realize who you are and who you are not. This is also referenced by Tom Basile, who was interviewed in one of the top traders of the world in the book “The New Market Wizards”. As you can see; in “know thyself”, Vedanta usually compares the self which is within. It empowers us, our thoughts, and then our actions. It also enables us to manage our mind and its billions of thoughts. Vedanta compares the self with the ocean. The sea base of the ocean is always calm. However; the waves on the top they come, and they subside into the ocean, and whatever happens on the surface of the ocean never affects its depth. The depth of the ocean is always calm. Therefore; Vedanta says, connect to the self and embed in that silence, peace, and happiness so you can raise to the next step. It is very important to use techniques that bring the mind to stillness, so you can connect to the self.
The second step, after knowing that you are the centre of peace, is reaching what we call “patience”. In this kind of state, after connecting the self and achieving patience, it will negate emotional trading. Through “patience”, impulse and emotion-based trading gets negated. The last thing we want as traders is to jump into a trade triggered by emotions. Just by thinking that a trade is going to go up or down, we do not want to get into a trade. For example; today the AUSUSD chart has a very large buyer bar, and that may make you enter the trade emotionally. What we always want to do is to follow a plan, so our intellectual conviction in our strategy based on the edge and the plan we have should not be overwritten by emotion. To do that, intelligently, we need to use risk management. The intelligent restraint must be there to overcome the emotion, and that requires practice. Therefore, we need to know thyself and have patience for the right opportunities to come. For example; even in our own trading floor over here when we are looking at the markets, sterling is further down. For you guys that are watching it; it is at 132, 131, and some of our clients and some other people that know me, and my friends are calling me to ask Thiru is sterling going to go down to 130? The point is whether it goes down, I cannot just jump into it and think I am going to have a gamble at this. That is not the right way to do it. Especially if you want professional and consistent returns. It is important to have always the patience for your setup to occur in the market. For all of you trading, and the ones that we mentor through the programs, you must have the patience to wait for the setups that you know and have calculated the probability of them winning.
When you know thyself and have patience to control your emotions and use risk management on each one of your trades. Then, we are ready for the third step which is to connect everything to achieve freedom. First; connect to the self of the ocean bed of patience, peace, happiness. Happiness is within, and not on the outside or the trade. Start from that strong knowledge which is the call of Vedanta. It helps the mind to be in the present moment. Next, by connecting to the self you have control over the outside, the externals of your mind. This is what we call the “A” part for alignment. The alignment of what? There are only two types of thoughts that happen in us traders. The intellectual thoughts and the emotional thoughts. After you connect to your ocean, you can control your mind and keep it aligned to the intellectual and the emotional side of our plan. And I must follow the intellect because I know cumulatively how it was constructed to give me the profit. I must also follow the emotional side of the plan, so I can control emotions to avoid impulse trading. All the steps will lead to “self-restraint”, to avoid emotional trading through self-control and risk management which will then help us to achieve financial freedom.
A true trader who understands Vedanta and applies it practically into trading, is a trader who is content with every single trade it takes, without getting attached to the outcome of the trade. A Vedanta trader knows that he is following a system of calculated probabilities that will eventually give him the edge and the profitability for consistent returns. All of it has been calculated, just by following the process without attaching himself to it. A true trader will always be peaceful regardless of the outcome, because he knows that it has all been calculated and mapped out as a true edge system if it is followed consistently and with discipline. I do hope that this video has given you enough value, go and digest this information and think of how you can apply the ancient system of Vedanta to trading knowing these three points.
I will leave you with that until the next time. As we always say; stay disciplined, follow your trading plan, and keep Trading Like a Master.