Traders Must Learn And Embrace Equanimity
Do you even know what equanimity means? In Wikipedia you will find that it “is a state of psychological stability and composure which is undisturbed by experience of or exposure to emotions, pain, or other phenomena that may cause others to lose the balance of their mind. The virtue and value of equanimity is extolled and advocated by a number of major religions and ancient philosophies.”
Every trader will have winning trades, losing trades, winning week and months and bad trading sequences that can last days, weeks or months. You must learn to stay positive and focused all the time.
When you are really successful and consistent you will be almost numb to winning and losing days in the market. As a trader you must not also preserve your trading capital but also and not less important, your emotional capital. Every trader has winning days and losing days so there is no need to ride an emotional rollercoaster about those P&L swings. Kevin Davey a systematic trader that runs KJ Trading Systems said it far more interestingly: “My “game” is that after every trading day, my wife and kids should not know if I made money, or lost money, on the day. Win or lose, I have realized that keeping on an even keel is the best thing to do emotionally. I’ve gotten to the point where no one can tell how I did on any day. To me, that is the ultimate in emotional control, and it helps me immensely in day to day activities.”