Five Spiritual exerciSeS for trading SucceSS

b y N A G I b S A M J I

“�Without��self-knowledge�we�cannot�go�beyond�the�mind”�Jiddu Khrishnamurti

5 Purify your mind – your thoughts control your trading ExErcisE – rEcord your thought ProcEss

7 go with thE flow – “thE trEnd is your friEnd” ExErcisE – PracticE a form of Physical ExErcisE liKE yoga

or tai- chi that PromotEs sElf -awarEnEss.

9 thE law of lEast Effort – your BEst trading haPPEns EffortlEssly ExErcisE – clEar your worKsPacE and clEar your mind.

11 dharma or PurPosE in lifE – trading should BE your Passion in ordEr to succEEd ExErcisE – BEgin to incorPoratE a simPlE mEditation PracticE into your daily routinE.

13 ExPEriEntial wisdom is thE truEst form of Knowing – thEory is onE thing, But it taKEs 1000’s of rEal tradEs to rEach a lEvEl unconscious comPEtEncE ExErcisE – imaginE yoursElf trading at your BEst and mEntally rEhEarsE what you want to sEE yoursElf succEssfully doing.

15 BooKshElf favouritEs

16 conclusion

3

When people ask me what kinds of the things have helped my trading, I often mention my efforts in seeking some kind of spiritual enlightenment. In particular I think my 10 day meditation retreat though Vipassana was really instrumental in developing in me a clarity of mind and ability to focus, that I was unable to achieve on my own previously. I’d highly recommend it to anyone who is serious about trying to improve their lives or has a strong interest in meditation. It was quite a challenging experience for me, as you are not allowed to talk for 10 days, and your focus is entirely on meditating.

I had tried meditating many times before on and off, but it’s really hard to improve and clear out your mind when you don’t practice regularly and for sustained periods. By blocking out 10 days of my life to focus specifically on this, I was able to really build on my practice, and develop a very sharp and penetrating focus of my mind. What I particularly liked was the philosophical teachings and approach to life. The program is completely free and open to any one . It is run entirely by volunteers who have gained something by it and in recognizing that value they want to help others by offering them the chance to learn and grow from the same experience. It is completely universal, and does not concern itself with any kind of supernatural rites or rituals. You won’t find any kind of hokey stuff, no guru, no props, no agenda, it is just pure hearted people helping others who choose to come to the program to find the truth in their lives. All done from a genuine compassion and love for all. It was a remarkable experience and one of the most significant in my life. If it interests you I’d encourage you to learn more here to see if it is for you.

I know it’s not easy to take 10 days and sort of check out of your regular life, but everyone can easily find an hour a day for themselves if they really try. That’s why I’ve laid out this report in 5 parts. I think it would be ideal to cover one idea a day and really think about each concept and see how it relates to your trading at the present moment. You may find some of these ideas beneficial to you and decide to incorporate them into your daily trading preparation or pre-market rituals.

I’m not saying any of this is absolutely essential to becoming a good trader. I can only tell you what I know from my experience, that’s the only place I can speak authoritatively on. You will need to experience and judge for yourself what works for you and what does not.

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“�Your�mind�is�like�this�water,�my�friend.�When�it�gets�agitated,�it�becomes�difficult�to�see.�But�if�you�allow�it�to�settle,�the�answer�becomes�clear.”mastEr wugui

5

M O n d aYPurify your mind – your thoughts control your trading

One important thing I’ve learned on my journey to become a master trader, is that our mental well being plays an enormous role in whether we will be successful or not. The quality of our thoughts eventually has a direct or indirect bearing on the quality of our life. How we see the world is governed by the filters our mind has created. It is this take on reality that shapes who we are and how we respond to the challenges in our life. Whatever we believe to be true becomes true for us. So it is very important not to develop self-limiting or self-defeating thoughts. Sometimes we are so unaware of this thought process because it has been conditioned in us for years or since we were children. It takes a lot of conscious effort to uncover these limiting beliefs and assumptions. While many like to study the root cause of these beliefs and explore our childhood etc, I think it’s more important to focus on what you want to replace those ideas with and how you will aim to do that.

In one of my favorite books, “The Four Agreements” Don Miguel Ruiz, explains four agreements we can all keep with ourselves that will help guide us through our lives. I read them all every morning as part of a pre-market ritual I go through. I’d like to share the first one with you because I think it’s the most applicable to trading. Agreement 1 – Be impeccable with your word and thoughts. He goes on to develop this idea for a full chapter, but I’d like to give you his summary of what it means in a nutshell; “Speak with integrity. Say only what you mean. Avoid using the word to speak against yourself or to gossip about others. Use the power of your word in the direction of truth and love.” I highly recommend this book not just to help guide you with developing a sound mindset for trading but for all aspects of your life.

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ExErcisE – rEcord your thought ProcEss

“Yesterday�is�history,�tomorrow�

is�a�mystery,�but�today�is�a�gift.�That�

is�why�it�is�called�the�present.”

mastEr wugui

One of my favorite exercises to recommend to traders is to make a recording of trading. What I would do is record my screen to capture everything my eyes were seeing as I was in a trade and I would wear a headset where I would consciously verbalize every thought that was going through my mind as I traded. Later I would play these trading movies back to me on my TV and study myself and my thoughts. I learned tremendously by doing this and strongly suggest beginning traders to do the same. You will pick up negative self-talk very quickly, you will recognize what makes you fearful rightly or wrongly, and you will also improve you trading almost immediately because the very fact that you know you are recording yourself will make you more accountable and help you stick to your word and follow your trading plan.

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t u e S d aYgo with thE flow – “thE trEnd is your friEnd”

There is a common analogy made about traders taking on the market as warriors going to battle with it everyday. Initially, in my early days as a trader I liked this analogy. But later I realized some problems with it. So I replaced it with what I felt was a more appropriate analogy, one of a surfer greeting the ocean. When I thought of myself as a warrior I was subconsciously doing a lot of harmful things to my mindset. First I was developing a personal and hostile relationship with the market. I was creating a threatening “kill or be killed” attitude. My focus gravitated towards all the things that could go wrong. I was always anxiously expecting a guerilla attack at every turn in the market. As a result, my trading was extremely timid and cautious because I approached the markets as something that was out to get me and take my money.

Later after I realized how destructive this mindset was, I flipped things around and began to think of approaching the markets the same way a surfer reaches the ocean. I started waking up with a sense of exhilaration and anticipation for what the new day could bring. I realized the market like the ocean, doesn’t care about me, it is not out to get me. It is a completely benign thing acting in perfect harmony to its own rhythm, ebbing and flowing all the time. My goal as a surfer is to read the ocean, get in synch with its rhythm and look for opportunities to enjoy a wave. Creatively expressing yourself on that wave is similar to discovering who you are as a trader and taking that style into the markets.

Similarly with trading, if I take a fall or crash on one ride there is always another one soon to follow. When I trade like a surfer I am trading from a sense of joy and love for the game. Surfing is the ideal sport to compare the market to because it’s not about rules or restrictions. It’s about freedom and opportunity to express yourself on your own terms. There are no expectations or the “right way” to ride a wave. When you stop trying to emulate others and just do what feels right to you, you are rewarded.

So with that surfer mindset, instead of fighting the ocean’s energy you are harnessing it. You see the perfect wave setup and you take it and until it tells you it’s time to get off. That is what trading with the trend is all about. By recognizing the markets power and allowing it to pick you up and take you for a ride, you let the market give you direction rather than trying to battle its power by imposing your will on it.

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You know that sense of how small you feel when you stand on a beach looking out over the vastness of the ocean? Remember that feeling next time you want to try and go against the market.

ExErcisE – PracticE a form of Physical ExErcisE liKE yoga or tai- chi that PromotEs sElf -awarEnEss.

During the exercises, simply go with the flow. The word “meditation” means trying to let go, so allow what is happening to happen. Don’t be concerned with expectations of what your experience should or shouldn’t be. If you stay in the moment and are aware of yourself that is all that matters. That development of self awareness will eventually make itself present in your trading also.

“One�often�meets�his�destiny�on�the�

road�he�takes�to�avoid�it”�

mastEr wugui

9

W e d n e S d aYthE law of lEast Effort – your BEst trading haPPEns EffortlEssly

When you are in the “Zone” there is no thinking involved, or trying. These activities block flow. Think of a giant tree, a tree doesn’t have to think about growing, it just does what it was naturally intended to do, which is reach for the stars. You were born to do the same. Once you’ve discovered what your passion in life is, immerse yourself into it.

What is this “Zone” I’m referring to. It’s those moments where you are so enthralled in what you’re doing with such passion and joy that you lose all sense of time. When you are in this moment of timelessness you are most present in the now and you effortlessly draw out your highest potential. When you’re in this “Zone” you never have to think about consciously doing anything. You just have to BE.

If you watch sports you’ve seen this happen with great athletes all the time. I enjoy playing basketball a lot and can recognize it when watching some of the great ones play at their peak level. Growing up watching Michael Jordan I could tell he was “feeling it” just by a certain look he would get in his eyes, when he tapped into that source he was simply unstoppable. These great athletes were so awe-inspiring it almost looked like they were forming some kind of magic on the courts, and the truly great ones even earned names like Earvin “Magic” Johnson.

I often make the comparison between trading and professional sports because I think they are a lot a like in so many ways. So it pays to study the pros and learn from them.

It’s more than likely if you think back to some of your best trading days, you won’t remember those days being particularly stressful or confusing. In fact you probably experienced moments of being in flow, in rhythm with the markets, and you somehow just knew what to do and didn’t have to think about your trading, you simply reacted instinctively.

It takes time and a lot of practice to get to this level but it is attainable.

You just need to get your mind out of your way and just be in that moment and let yourself create and respond from a source deep within. The moment you “Try” to trade well you’ve slipped out of the “zone”.

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ExErcisE – clEar your worKsPacE and clEar your mind.

One thing that has helped me is keeping my workspace neat and organized. Our minds are constantly processing all of our surroundings and the less stimuli you throw at it the easier your mind will be able to focus on the task at hand. It’s partly why places of meditation generally take place in very minimalist surroundings. It is the sereneness that helps calm the mind. Likewise with your actual platform layout, try as best you can to reduce the clutter, your mind has to work around. Ask yourself if you really need to have all those indicators on your charts. Are they not just derivatives of price and volume anyways?

MaSter Wugui:�My�friend,�the�panda�will�never�fulfill�his�destiny,�nor�you�yours�until�you�let�go�of�the�illusion�of�control.

ShiFu: Illusion?�

MaSter Wugui: Yes.�

MaSter Wugui:�Look�at�this�tree,�Shifu,�I�cannot�make�it�blossom�when�it�suits�me�nor�make�it�bear�fruit�before�its�time.�

ShiFu:�But�there�are�things�we�can�control:�I�can�control�when�the�fruit�will�fall,�I�can�control�where�to�plant�the�seed:�that�is�no�illusion,�Master!�

MaSter Wugui: Ah,�yes.�But�no�matter�what�you�do,�that�seed�will�grow�to�be�a�peach�tree.�You�may�wish�for�an�apple�or�an�orange,�but�you�will�get�a�peach.�

ShiFu:�But�a�peach�cannot�defeat�Tai�Lung!�

MaSter Wugui:�Maybe�it�can,�if�you�are�willing�to�guide,�to�nurture�it,�to�believe�in�it.�

ShiFu:�But�how?�How?�I�need�your�help,�master.�

MaSter Wugui:�No,�you�just�need�to�believe.�Promise�me,

ShiFu:�promise�me�you�will�believe.

11

t h u r S d aYdharma or PurPosE in lifE – trading should BE your Passion in ordEr to succEEd

Trading is such a difficult profession, it is so hard to master and the success rates as a result are very low. If you are new trader, you really need to ask yourself why have you chosen this path. To me it has to be about more than just the money. It truly must be your destiny, your calling, your passion. I read the following by Vincent Cooper, a writer for a martial arts magazine. He was discussing what he called the Dao of Kung Fu Panda, and I think it is equally applicable to the spiritual side of trading; “You are who you are. Discover who you are and love yourself for who you are. Respect yourself for who you are. Banish influences that will ask you to do anything other than fulfill your own unique destiny. Taking your life off on a tangent may bring achievement, success, accomplishment and so on but how do you feel five minutes later? If reaching those goals has been contrary to your nature you will know it straight away. Despite the successes you will be left with an empty, hollow feeling, wondering why everyone was making such a fuss about this latest thing you have done. Now, you can see right through it and see it for what it is: an illusion. Sooner or later, you will be forced to take a long, hard look at yourself once again and consider the direction your life is heading in. Take a moment now and consider if your heart is telling you that your current path is your destiny. If not, you will save yourself a lot of time and effort to recalibrate your guidance system and head back in the direction you know deep inside you should be going in.” There are no secret ingredients. You don’t need any ‘secrets’. The ‘secret’, if that is what it is, is to harmonize with your true nature and maintain that harmony throughout your life. You are enough; you have everything that you need to live your life. You just need to be very sure that it is indeed your life that you are living and not someone else’s.

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ExErcisE – BEgin to incorPoratE a simPlE mEditation PracticE into your daily routinE.

I know a lot of traders who seem to feel a little uncomfortable with this idea, or are even a little intimidated by meditation because they don’t even know how to start. It really can be quite simple. Recently I came across a great series of videos on youtube by someone who just happens to live out here on the island. I think she’s done an amazing job at explaining how one can get started very easily with no previous experience. She is straight forward and completely on point. You can see Kavita Maharaj’s videos here. I recommend starting with the meditation introduction and intro to pranayama (breathing exercises) then work your way through the more advanced ones in your own time.

Mr.�PINg:�The�secret�ingredient�is�…�nothing!�

PO:�Huh?�

Mr.�PINg:�You�heard�me.�Nothing!�There�is�no�secret�ingredient…�

PO:�Wait,�wait�…�it’s�just�plain�old�noodle�soup?�You�don’t�add�some�kind�of�special�sauce�or�something?

Mr.�PINg:�Don’t�have�to.�To�make�something�special�you�just�have�to�believe�it’s�special.

(po looks at scroll again, and sees his reflection in it)

PO:�There�is�no�secret�ingredient…�

13

F r i d aYExPEriEntial wisdom is thE truEst form of Knowing – thEory is onE thing, But it taKEs 1000’s of rEal tradEs to rEach a lEvEl unconscious comPEtEncE

While I’ve referenced Kung Fu Panda a lot in this report, I simply can’t finish without drawing on one of my all time favorite movies, The original Karate Kid. In it there was another wise old master, Mr. Miyagi. a fountain of spiritual wisdom in his own right. He recognized the importance of hard work and repetition. The famous car washing scenes with the “wax on wax off” exercises were all about burning those fundamentals into Daniel-san’s muscle memory. So when his skills were called upon he could react instinctively and intuitively. All this takes time and patience. Most people enter the trading world with very unrealistic expectations, they think they can become masters within days or weeks, but really they should be thinking in months and more likely years. Daniel had to learn the same from Miyagi when he eagerly wanted to master the mysterious “Crane technique”, Miyagi’s response, “First learn stand, then learn fly. Nature rule, Daniel-san, not mine.”

Similarly we also need to know where we stand on our path to trading mastery. It can be frustrating paper trading, using a simulator or small size trades, but there is no use trying to trade advanced strategies like a pro when we still don’t have the basics down. Remember Miyagi’s response to Daniel when he was so eager to learn how to punch? “Better learn balance. Balance is key. Balance good, karate good. Everything good. Balance bad, better pack up, go home. Understand?” Take your time when you start, and realize how critical your early study is, you are laying the foundation of your trading career, so this is really the place to weed out all your bad habits.

What is great about repetitive practice is that you really begin to know your edge works and gain confidence in it. It is one thing to be told or hear about others having success with this tactic or that strategy, but you will never really KNOW for yourself if it really works if you haven’t executed it countless times in multiple market environments, it’s only when you’ve done this you know from within that you have what it takes to be a successful trader.

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ExErcisE – imaginE yoursElf trading at your BEst and mEntally rEhEarsE what you want to sEE yoursElf succEssfully doing.

The sports world has tons of examples of how athletes benefit from using positive mental rehearsal to improve their performance. All you have to do is imagine what you want to achieve and visualize yourself as an active participant. Mentally tell yourself that you are confident and that you have the ability to perform this task successfully. Stay relaxed and repeat several times.

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dEsErt island rEading list

thE four agrEEmEnts a Practical guide to Personal freedom

livE thE lifE you want the secrets to Quick and lasting life change with neuro -linguistic Programming

thE alchEmist a fable about following your dream

what thE BlEEP do wE Know discovering the endless possibilities for altering your everyday reality

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c O n c l u S i O n

Carl Jung said, “Your vision will become clear only when you look into your own heart. Who looks outside, dreams; who looks inside, awakens.”

Ask yourself where are you looking for answers? Inside or outside?

As Bruce Lee said, “My Truth is not your Truth”, Understand that your trading is going to have to be in some major part a journey of self discovery, don’t shy away from that, embrace it and find your own path, the liberation you will experience will be worth it as will the joy you get from immersing yourself in the process.

Remember there is no secret, other than everything that you need to reach your potential is within you. You already have all the answers, all that remains is for you to discover them.

I wish you all the best on your journey!

With Metta and good trading,

Nagib