The Taoist Trader: Tao Te Ching (Chapter 10)
Carrying body and soul and embracing the one,
Can you avoid separation?
Attending fully and becoming supple,
Can you be as a newborn babe?
Washing and cleansing the primal vision,
Can you be without stain?
Loving all men and ruling the country,
Can you be without cleverness?
Opening and closing the gates of heaven,
Can you play the role of woman?
Understanding and being open to all things,
Are you able to do nothing?
Giving birth and nourishing,
Bearing yet not possessing,
Working yet not taking credit,
Leading yet not dominating,
This is the Primal Virtue.
(By Lao Tsu, translated by Gia-Fu Feng and Jane English)
While trading, you need to practice “attending fully and becoming supple.” Basically, you need to be aware and flexible. The kind of awareness needed is being “understanding and being open to all things.” This kind of openness means letting go of your preconceptions of how the trade will turn out. Instead, you need to watch the trade unfold in price as well as time. Too tight of stops won’t allow the trade to breathe.
Sometimes it is better to stay out of a market. “Are you able to do nothing?” Along with staying out of certain markets at certain times, “doing nothing” is an attitude to cultivate during all your trades. Let each trade reveal itself before taking appropriate action. Don’t force a trade. Practice noninterference.
Nourishing a Trade
“Giving birth and nourishing” can be a way of viewing certain trades. As a trade accelerates out of the womb in the preferred direction, “nourish” the trade by adding to it when appropriate. Give the trade wings. And at day’s end, remember the principle “working yet not taking credit.” Give credit to the Tao for guiding your trading hand.