I came to deeply appreciate the infinite wisdom of Buddhism on my path to become a consistently profitable trader. Being spiritually inclined it was only natural that I would look to Buddhism to learn more about myself. As I absorbed the Buddhist teachings my trading improved and I believe that these teachings can improve your trading too.
What I discovered profoundly transformed how I see myself, and the world of trading today. Before we delve in I want to clear up a big misperception about Buddhism which prevents many traders from looking at it:
Buddhism in its essence is the teaching of how the universe works. It isn’t a religion, as is commonly assumed
The number one teaching to take away from Buddhism is that EVERYTHING IS ONE.
This insight is remarkable because when you fully understand it you will know that it holds the key to unlock the workings of the entire universe. The key is so simple, yet most of us have no idea how to apply this profound wisdom in their daily (trading) lives.
Everything is one means that everything is made up of the same stuff and is governed by the same rules
Guess what? Quantum physics, which is the since of how the universe is working at micro level, is discovering the truth of the above statement with new research that emerges every day. The new research is changing how we see ourselves and the world and how we can deal with our challenges.
There are only a few laws. You need to understand them in order to apply them to improve your trading.
The first universal law states that everything is made up and interconnected by energy
You are pure energy in motion, and the markets are pure energy in motion. The difference between you and the market is that your personal energy is a small part that contributes to the collective energy of every trader who participates in the markets.
The nature of energy is finite
It cannot be added to or taken away from. It can only be manipulated through the consciousness of every individual. When you expand your own consciousness you have greater power over how to manipulate the energy in your favour.
The big mistake most traders make, which causes many glitches
Most trades have tunnel vision. Since they are unaware of how the universe works they tend to focus on one thing that needs improving in their minds. This could be working on improving their stop loss strategy. It might be working on perfecting their entry methods, or their indicators.
The truth is that none of the above makes you a better trader because it misses the biggest point of all: While you focus on the one thing you feel needs to improve, you are not seeing the millions of other things which would help you trade better with much less effort.
If you want to improve your trading you need to think like the universe. The universe is an all inclusive place and your own trading actions and trading plan must reflect this. Buddhist wisdom helps you tap into the infinite multiplicity of the universe while discovering and applying the simple laws of oneness to improve your trading.
Mercedes Oestermann van Essen is a thought leader in the field of trading psychology. She is the author of “The Buddhist Trader” and other books on trading psychology and related subjects.