Tao Te Ching (Chapter 46)
When the world practices Tao,
horses fertilize the fields.
When the world ignores Tao,
horses are bred for war.
There is no greater calamity than desire,
no greater curse than greed.
Know that enough is enough,
and you’ll always have enough.
(By Lao Tsu, translated by Brian Browne Walker)
The Greed Curse
There is “no greater curse than greed.” Greed infects almost all traders at certain points in time. In its most obvious form, greed motivates you to hold on to your positions too long. Sometimes these positions turn into a loss . . . perhaps, a large loss. Turning winning trades into losing trades consistently is a curse. But there are subtler aspects to this curse.
What if the Tao has different goals for your trades? Maybe, smaller profits. Maybe, a smaller lot size. If you ignore these more subtle suggestions of the Tao because you are infected with greed, then failure is probable. What if greed says, “There’s big money in trading oil?” Do you dive into trading oil? Maybe flowing with the Tao would require you to trade corn or the EUR/USD?
Enough is Enough
“Know that enough is enough, and you’ll always have enough.” Your trading decisions should stem from consulting a deeper source, the Tao. Being in harmony with the Tao, you will naturally avoid greed. Don’t let trading books or articles lead you astray with a focus on large profits. Stay in tune with your inner intuitive knowing and you will know when “enough is enough.”