On my way home from New York a few weeks ago I was listening to Cat Stevens “Moonshadow” on my Ipod and thinking about how simple, philosophically grounded thinking can impact a trader’s bottom line.
We tend to think that taking a loss on a trade is the end of the world when it is not. It is just a trade that did not work out. Period. No need to re-invent the wheel, throw out the baby with the bath water, or cry wolf one too many times. Maybe we should simply have the attitude of Cat.
… if I ever lost my hands
Lose my plough, lose my land
Oh, if I ever lose my hands- Oh, if…
I wont have to work no more
And if I ever lose my eyes
If my colors all run dry
And if I ever lose my eyes – Oh,
I won’t have to cry no more
And if I ever lose my legs
I won’t moan and I won’t beg
Oh if I ever lose my legs- Oh if…
I won’t have to walk no more
And if I ever lose my mouth
All my teeth, north and south
Yes, if I ever lose my mouth- Oh if…
I won’t have to talk…
Let’s add another stanza here for the stock trader…
… if I ever lose a trade
The Market takes the money I could have made
Oh, if I ever lose a trade…
I won’t have to brag no more!
Kind of puts things in their proper perspective doesn’t it?