There is an old saying from Lao Tzu, “Mastering Others Is Strength, But Mastering Yourself Is Real Power.” If you want to apply this saying to the world of trading, it is actually what distinguishes a gambler from a professional.
Why “Mastering Yourself” Is So Expensive in Trading
Many people think that trading is about “beating” the market. But in reality, the market doesn’t care about us at all. The real enemy is not the market, not the broker, and not even the big sharks (whales), but the reflection of ourselves on the computer screen.
I confirm that many people already know about money management, but following the rules is another story. Because technical factors only contribute 20% to success, the remaining 80% lies in psychology and risk management.
You can have the most “powerful” indicators, but if your soul is not calm and you are greedy and afraid to take over, your account will still be subject to Margin Call in the end.
A USD10 Account Is the Same as a USD10,000 Account
This is a logic that many people overlook. Many people think, “Even with a USD10 account, I can overtrade a little.” But habits don’t change with the size of the account.
If you’re used to breaking your own discipline even with a USD10 capital, the same habits will carry over when your capital becomes USD10,000. The only difference is that the effects of losses are much more painful.
Life Discipline, Mirror of Trading Discipline
Daily routines like waking up at 6 am and coming to work early, all of these are not just ordinary good habits. They are actually the foundation of character building that will be evident when we trade.
Trading is not a separate activity from daily life. The way we manage our emotions, the way we spend our salaries, will all be “shown” on the chart when we press the Buy or Sell button.
As they say, “How You Do Anything is How You Do Everything.” If you’re not disciplined in your daily routine, it’s a fantasy to suddenly become disciplined when you’re dealing with money in the market.
Key Points
Trading success depends on 80% psychology and money management, not just technical.
Trading habits do not change with account size, if you are not disciplined with small capital, it is the same with large capital.
Discipline in daily routine reflects discipline during trading.
Money management is not just a Risk:Reward formula, but the art of controlling your own desires.
Obeying Stop Loss and avoiding revenge trades is the form of "true power" that Lao Tzu meant.
Money management is not just counting numbers, it is more of the art of controlling desires. Training yourself to obey Stop Loss, avoid revenge trades after losses, and close the laptop when you have reached the daily target, that is the true power that Lao Tzu meant.
How are you doing? Are you building a new routine to strengthen your trading discipline, or is this the result of learning from past mistakes?
