What Traders Can Learn From Buddhism

The path to consistent trading performance is full of myths which will do little to make you a good trader and can do a lot of damage prolonging the journey to lasting trading success.

Buddhism teaches us about the fundamental wisdom that our outside world is created first from within. Our inner visions, thoughts and feelings, which are for the most part hidden from the conscious mind create our outside world and that includes your trading results.

In other words there is nothing outside of you, or in the world which has not first been created inside you.

If you were to fully utilise this fundamental piece of information your trading results could be improved.

Truth is that this piece of wisdom eludes  us in terms of practical application.Trading psychology is not first and foremost on traders\' minds as the tool that brings lasting success. Particularly new traders tend to ignore the importance of the psychology of trading for their trading success.

Most traders still believe that finding the perfect trading system is the answer to trading success when in actual fact the answer to lasting trading success is a calm, aware mind that has no expectations of future outcomes.

To the calm mind the whole universe unfolds. The calm mind observes peacefully without attachment and without the need to judge what is appearing in front of it.

I might also say that a calm mind uses the ego as a tool rather than allowing the ego to run the trading show, or the show of life, as is the case for the vast majority of people.

We are not talking about getting rid of the ego. This is impossible and also not in your interest. The ego has an important function and is an integral part of you. Rather we are after integrating the many different aspects of us and using them as and when appropriate.

Your mind, when calm and clear from the mental chatter that is caused from indiscriminate association with other people\'s thoughts, feelings and emotions, will focus better and be able to take in information faster. Both are very important abilities, particularly for day traders.

Learning to calm the mind is a process that is not achieved over night. It requires a systematic approach. In my coaching I teach clients techniques to identify conflicting beliefs and values by asking the right questions. I teach them how to notice when they are tuning into other peoples thoughts and processing them as their own.

Asking the right questions is a powerful technique that your busy, untrained mind will lap up, as it puts it to use while at the same time giving it clear directions.

The mind is a wonderful tool, and will do what you ask of it, but it is just that, a tool. It is not your master. Yet, most of us believe that the mind is the master and allow it to dictate their thinking, feelings and actions, without their conscious awareness.

When you allow the mind to control you in this way, you will be transferring your feelings and emotions about your life onto your trading. This is what is also referred to as transference in psychology. It is a big issue for traders who do not notice how the argument they had with their spouse is transferred, sometimes days, or even weeks later to their trading decisions.

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Buddhism talks about mindfulness. Developing mindfulness is the main key that opens the door to trading success and it can be learnt. Are you willing to learn a few techniques that would improve your trading psychology beyond that which you thought possible?