By Griffin Cooper 1/4/2024

It can be tempting when trading to focus on trying to find “the perfect system” or strategy. But the truth is that trading success isn’t just about the right strategy or the perfect timing—it’s about mastering the art of self-discipline. Much like the Monkey King and Guanyin from Chinese folklore, traders too can draw inspiration from their journey towards self-mastery.

In this article, we’ll explore how adopting the principles of self-discipline can transform your trading career, drawing parallels from the Monkey King'‘s quest for enlightenment and Guanyin’s compassionate guidance.

The Written Trading Plan: One Page to Rule Them All

Imagine having a magic scroll that encapsulates the essence of your trading strategy—all in one page. At the Owl Group and Ablewaytech, we adhere to the philosophy that if you can’t articulate your trading plan on a single page, it’s too complex. The Monkey King, on his journey to becoming a disciplined warrior, faced numerous challenges but always adhered to a single purpose. Similarly, a concise trading plan, detailing entries, exits, setups, stops, position sizing, markets, and trading frequency, serves as your guiding compass. Just as the Monkey King focused on his mission, a well-defined plan keeps traders on track amid market uncertainties.

Trading in Sample Sets: The Path to Probabilistic Thinking

The Monkey King didn’t achieve enlightenment overnight; similarly, traders must embark on a disciplined journey. One of the most powerful ideas that we strongly advocate is trading in sample sets of thirty trades without deviation. This approach ensures that each trade can be compared to the others because we’ve kept the variables the same throughout the sample. By trading in sample sets, traders gain a deeper understanding of their strateg’s efficacy. The Monkey King’s discipline in mastering his skills resonates with our commitment to sticking to a plan. Trading in sample sets encourages probabilistic thinking, which is very hard for most people do. But by practicing this simple discipline, the sample sets work by detaching traders emotionally from individual trades and allowing the statistical edge of the system to unfold over time.

Recording and Reflecting: The Trade Journal Chronicle

Guanyin, with her wisdom and compassion, guides traders toward introspection and growth. In the trading world, Dr. Alexander Elder’s words echo the importance of keeping a trade journal: “Show me a trader with good records, and I’ll show you a good trader”;. This practice ensures honesty, accountability, and a continuous learning curve. Guanyin’s compassionate guidance parallels the importance of self-reflection in trading. By documenting trade results, traders can learn from mistakes, refine strategies, and ultimately progress in their craft.

Conclusion: Trading Mastery

In the art of trading, self-discipline is the key to success. Drawing inspiration from the Monkey King and Guanyin, we can learn to emphasize the importance of a concise trading plan, trading in sample sets, and maintaining a meticulous trade journal. Like mastering any craft, trading requires continuous improvement and a commitment to self-discipline. By measuring progress against personal goals and staying true to a well-defined plan, traders can navigate the market with the skill and finesse of the Monkey King himself.