TTC - 2

Okay, let's take a look at Chapter Two of the Tao Teh Ching. For my text, I am using the translation by Master Ni, Hua-Ching, in the book he published entitled The Complete Works of Lao Tzu: Tao Teh Ching and Hua Hu Ching.

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As soon as the world regards something as beautiful,
ugliness simultaneously becomes apparent.
As soon as the world regards something as good,
evil simultaneously becomes apparent.

In exactly the same manner,
existence and nonexistence give birth to each other.
Difficult and easy define each other.
Long and short form each other.
High and low make each other distinguishable.
Silence and sound make each other conscpicuous.
Front and back connect each other.

Realizing this, one does not separate one's being
from the subtle essence of the universe.
One holds no preconceptions, and does things
without insisting on personal conditions.
One guides people by living in accord with the essence of life.
One brings good things about,
but has no intention of possessing them.
One performs work,
but has no intention to acquire personal power.

When one's work is accomplished,
one lets go of it and seeks no reward or recognition.
Because one does not claim credit for oneself,
one does not do any damage to oneself.
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There are some nice lessons here and I'll make some comments, and invite others to do likewise. First thing that jumped out at me was the idea of holding no preconceptions. Talk about being unbiased, that's great!

In tune with that, understanding the duality of things, such as the market, it can be up, then in its own time down, then in its own time up again. The idea of being up creates the idea of being down (although timing can be an issue of course), and vice versa. We trade in accord with these waves and moves of the market. Trying to oppose the market or dictate to it, insisting on our own personal conditions, is a waste of energy and principal.

Another is to not credit yourself for those great trades, i.e. not let your ego get involved, and not be greedy like thinking that you didn't make enough on your trade, or that you want the same exact trade again at the same number. The market may reverse and do something completely different at that number. Once you've traded your setup and got your profit, just TMAR and return to center, either call it a day, or wait for the next trade to appear, without preconception as to what it will be. Yes, we all enjoy trying to predict the future. But the real trick in life, as well as in trading, is to be well positioned for whatever that future may bring. Even if it arrives in the next five days, five hours, or five minutes!

Identifying personally with the trade, what may be called letting your ego get involved with it, can lead to damaging consequences. Like letting emotion get in the way of taking a loss, and then it spirals out of control. Or thinking that a trade really should go your way, and when it doesn't, you start thinking the market is wrong but should get smart and get right with you anytime soon. Or thinking that because you got a nice profit by going long or short something, that you can make twice as much by going long or short that thing again; but the market has other ideas. So the idea is to let go, don't get associated or identified with the trade. Move in accord with it, and when the task is accomplished, TMAR and let go of it.

Just some ideas for now. Enjoy all!