Tao Te Ching (Chapter 24)
He who stands on tiptoe is not steady.
He who strides cannot maintain the pace.
He who makes a show is not enlightened.
He who is self-righteous is not respected.
He who boasts achieves nothing.
He who brags will not endure.
According to followers of the Tao,
“These are extra food and unnecessary luggage.”
They do not bring happiness.
Therefore followers of the Tao avoid them.
(By Lao Tsu, translated by Gia-Fu Feng and Jane English)
Reaching too high in the markets could result in uneven results: “He who stands on tiptoe is not steady.” Rapidly increasing trading-lot size in the market could result in losses: “He who strides cannot maintain the pace.” It is important that you do not use force to move beyond your comfort zone when trading. “Standing on tiptoe” is impossible to do for a long period of time, whereas standing on the first rung of a ladder and moving up rung by rung when appropriate is doable. Applying this concept to your comfort zone means to increase the number of contracts traded in gradations. Increase the number of different stocks traded, futures traded, forex pairs traded and/or options traded in gradations. If you don’t move beyond your comfort zone gradually, you may unconsciously sabotage yourself.
If possible, don’t talk to anyone about your open trades or trades you are planning to make. The one exception to this rule is if you talk to your mentor. “He who boasts achieves nothing; He who brags will not endure.” An egocentric attitude could lead to staying in a losing position too long. Bad advice could lead to getting out of a winning position too soon or not entering a winning position in the first place. And if you have to self-righteously defend a trade, you could lose self-respect: “He who is self-righteous is not respected.”
A Light in the Mint
If you decide to buy gold or silver coins when visiting the United States Mint, it helps to have the lights on. However, if you’re pursuing coin-trading enlightenment, it’s better to leave Steven Spielberg and his video camera at home. “He who makes a show is not enlightened.” Of course, in this line’s original translation, it referred solely to Hollywood movie producers. Certain later translations included traders and their exchange, “The Taoist Board of Trade.” Since “nothing” was traded on this exchange, it soon faded from its initial prominence.