I've been thinking a lot about Stoic philosophy lately. What does it have to do with trading? Actually, a lot more than you might think.
I suspect almost all good long-term traders are stoics, whether they realize it or not. They are not driven to despair by events that are beyond their control. They carefully segregate what is something they can influence and what isn't. They are much more concerned with their internal states, and continually test them, checking whether their judgements are sound, their opinions un-influenced by nonsense. The rest of the world, the world of externals or 'preferred indifferents' is beyond control and Stoics work hard to make sure it isn't wasting their time, affecting their mood or corrupting their thinking.
From this perspective, the internet is both a boon and a curse. You can easily get sidetracked by social media or some trading forum, or some maniac's trading blog (ahem). However you can also learn a lot, both what to do and what NOT to do. The key is to use your rationality, reason, and continually hone your judgement. It's all you have in the end.
The universe may be harmonious but it can also be chaotic, and while we need to harness that chaos, as traders, we need to continuously be on guard against it.
I suspect almost all good long-term traders are stoics, whether they realize it or not. They are not driven to despair by events that are beyond their control. They carefully segregate what is something they can influence and what isn't. They are much more concerned with their internal states, and continually test them, checking whether their judgements are sound, their opinions un-influenced by nonsense. The rest of the world, the world of externals or 'preferred indifferents' is beyond control and Stoics work hard to make sure it isn't wasting their time, affecting their mood or corrupting their thinking.
From this perspective, the internet is both a boon and a curse. You can easily get sidetracked by social media or some trading forum, or some maniac's trading blog (ahem). However you can also learn a lot, both what to do and what NOT to do. The key is to use your rationality, reason, and continually hone your judgement. It's all you have in the end.
The universe may be harmonious but it can also be chaotic, and while we need to harness that chaos, as traders, we need to continuously be on guard against it.
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