Jul 11, 2012
Michael Covel talks about "Zen Habits", a website that offers general wisdom from the Zen school of Buddhism. What you might not realize is that this philosophy is incredibly relevant to trend following traders. Michael discuses one post in particular called "The Wisdom of Allowing Things to Happen". In our Western society, we're doers and creators; we don't just wait for things to happen. Michael doesn't discount the amount of effort needed to start a successful business or to be a trend following trader, but there is immense value in simply allowing things to happen, observing, and responding to the change. Covel discusses Zen, Yoga, and the aforementioned article from a trend following perspective. We think we're in control, but we're really not. We don't control the overwhelming power of nature or the market, yet we have the illusion of control in our lives. "You learn how things work. Instead of trying to make things work the way you want them to work, just watch them work. You'll learn more about human nature, about the nature of the world, as you see things work without you controlling it. It might change you. The best you can do is take what is presented to you in the moment of now and respond to it. Covel relates several anecdotes that link the Zen mindset and trading. "To control your cow, give it a bigger pasture". By allowing things to happen, giving them more room to grow and prosper, your needs will also be met - and you've done no work." Ultimately, trend following is about allowing something to happen. With trend following, you can't control the cow, you can't control the market. However, you can react and respond to it. The trend follower's job is not to predict, but to observe and respond. You don't control the markets. You don't control how much you're going to make tomorrow. If you accept the fact that you don't know what will happen, you open yourself up to better ways to minimize risk, better strategies that embrace the unknown, and outcomes that you couldn't conceive of on your own. The wisdom of allowing things to happen is rock central to life success, entrepreneurial success, and trend following success. Special Offer: receive free DVD delivered to your home or office: www.trendfollowing.com/win.