A Trader Journal

Change yourself, change your trading.

Meditation and Trading - Part 1

This series is not about general benefits of meditation or mindfulness. Most readers probably already know benefits of meditation. I think the process of meditation and trading has lot of commonality. So  improvement on these common attributes and skills via meditation practice will automatically lead to better trading. Also cultivation of these via meditation is faster and cheaper with benefits that extend beyond trading. So this series is more about approaching meditation practice in a way that closely parallels trading process and cultivating the skills useful for better trading.

Fearful thoughts and emotional reactions whether it is related to trading or losses are conditioned responses. Meditation is basically a powerful method for enlarging or deepening our awareness to the point we can reach within us a state that is there before conditioned responses. Connecting to this unconditioned state helps us to use it as anchor long enough to not swept by these conditioned patterns or reactive thoughts and feelings.

This in turn provides ability to stand outside, see with clarity and act wisely. As we continue to practice meditation and enlarge our awareness, it becomes easier on an ongoing basic to observe stream of thoughts and feelings that make up our experience. We are less prone to get stuck or lost in them.

When we have a position and market is going against our position or providing mixed signals, wouldn't the above skill be useful? Or how about when we miss a good trade by few points or prematurely exit from a trade only to see it is turning to be a huge runner? We cannot control market or results. But on other hand having ability to connect to state that is beyond conditioned patterns helps us to use it as anchor long enough to detach, let go and look forward to next opportunity. This in turn is good both for account and health.


Reactive thoughts and feelings still will occur. We cannot avoid it. What changes is our relationship to them. With meditation our awareness becomes large enough to witness them rather than be carried away or identified by them. This in turn helps to acknowledge them, allow the thoughts and feelings to move through, take action if it is reasonable or choose to let go if it is unreasonable.


Also when we experience expanded awareness, we start feeling deep sense of peace. Out of this other non-conditioned states like wisdom, deep insight, Joy etc arise. In itself, this state of peace is nothing we need to develop as it is there always. All we need to do is to become still, get out of the way and quite enough to allow it to emerge. Practice of meditation is most straight forward way to this.

The practice of meditation also cultivates states of greater wholeness.  Reactive thoughts and conditioned emotional patterns tend to pull us away from our center towards "mind trips" or "personal dramas".  As we deepen and enlarge our awareness, we begin to be more in touch with our self.

Learning to meditate is a process that involves at least four distinct stages:
  • Right Attitude
  • Right Technique
  • Developing focus
  • Cultivating awareness
Later posts in the series will go into details of each of these stages with techniques and exercises to cultivate.

Some food for thought....can one trade well without the above 4 stages in their trading? If one were to improve on above stages via meditation practice, would that carry automatically and help them in their trading? Would meditation practice a fast and cheaper way to practice and develop these skills?

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Note: I am not an expert on meditation. So the contents of this series is a summary of my readings and understanding. Part of the reason I am writing this series is for myself to learn better the concepts and improve my own practice. This post is NOT an advice or recommendation. 

1 comments:

O_Cao said...

Very good article

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