THE CAT STEVENS PHILOSOPHY -For Traders

I was listening to Cat Stevens “Moonshadow” on my Ipod and thinking about how simple, philosophically grounded thinking can impact a trader’s bottom line.

We tend to think that taking a loss on a trade is the end of the world when it is not.  It is just a trade that did not work out.  Period.  No need to re-invent the wheel, throw out the baby with the bath water, or cry wolf one too many times.  Maybe we should simply have the attitude of Cat.

… if I ever lost my hands
Lose my plough, lose my land
Oh, if I ever lose my hands- Oh, if…
I wont have to work no more

And if I ever lose my eyes
If my colors all run dry
And if I ever lose my eyes – Oh,
I won’t have to cry no more

And if I ever lose my legs
I won’t moan and I won’t beg
Oh if I ever lose my legs- Oh if…
I won’t have to walk no more

And if I ever lose my mouth
All my teeth, north and south
Yes, if I ever lose my mouth- Oh if…
I won’t have to talk…

Let’s add another stanza here for the stock trader…

… if I ever lose a trade
The Market takes the money I could have made
Oh, if I ever lose a trade…
I won’t have to brag no more!

Kind of puts things in their proper perspective doesn’t it?